Broadcom Lands $10B Custom AI Chip Deal with OpenAI, Boosting 2026 Sales Projections

Broadcom exceeded fiscal third-quarter earnings expectations and provided robust guidance, driven by surging demand for ASICs amid the AI boom. The company announced it secured $10 billion in orders for custom AI chips, or XPUs, from a new client, possibly linked to OpenAI, which plans to release its first AI chip next year co-designed with Broadcom. Additionally, Broadcom’s CEO Hock Tan noted the engagement of four new potential customers alongside existing large clients, boosting AI revenue forecasts to $6.2 billion for Q4. The firm is also ramping up CoWoS packaging orders to cater to demands from industry giants like Google and Meta, who are enhancing their AI capabilities. Broadcom’s fourth-quarter revenue is projected at $17.4 billion, surpassing estimates. With a 22% year-over-year increase, the company’s net income reached $4.14 billion, showcasing its strong market position in AI and semiconductor sectors.

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