Broadcom Secures $10 Billion AI Chip Order, Shares Surge

Broadcom Inc. has secured a $10 billion order for custom artificial intelligence (AI) chips from an undisclosed customer, widely speculated to be OpenAI. The chips are slated for internal use and are expected to begin shipping in 2026.

Following the announcement, Broadcom's shares surged nearly 9% in premarket trading, elevating the company's market valuation to approximately $1.6 trillion. Analysts from firms such as J.P. Morgan and Morgan Stanley have noted the significant implications of this deal, highlighting Broadcom's growing presence in the AI sector.

In its third-quarter fiscal 2025 earnings report, Broadcom reported a 22% year-over-year revenue increase to $15.95 billion, with AI semiconductor revenue jumping 63% to $5.2 billion. The company projects fourth-quarter revenue of approximately $17.4 billion, anticipating a 66% year-over-year growth in AI chip sales.

CEO Hock Tan has confirmed his commitment to lead the company through at least 2030, reinforcing investor confidence in Broadcom's strategic direction.