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Broadcom Jumps on $10 Billion AI Orders After Earnings Beat

Reports point to OpenAI as the buyer, highlighting rising confidence in custom AI chips versus Nvidia.

Nvidia's CEO, Jensen Huang, with a Grace Hopper AI superchip platform.
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Broadcom Inc. headquarters in San Jose.
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Overview

  • Broadcom posted record fiscal Q3 revenue of $15.95 billion and adjusted EPS of $1.69, with AI sales up 63% to $5.2 billion and guidance for Q4 AI revenue of about $6.2 billion on total sales of $17.4 billion.
  • CEO Hock Tan said a newly qualified customer placed production orders exceeding $10 billion for AI racks based on Broadcom’s custom accelerators, and he projected materially stronger AI revenue in fiscal 2026.
  • Shares jumped roughly 10%–16%, adding more than $200 billion in market value, as Nvidia and AMD slipped and dozens of analysts raised price targets.
  • Multiple outlets and analysts widely identify the unnamed customer as likely OpenAI and report a Broadcom partnership to co-design custom chips for internal use beginning in 2026, though neither company has confirmed the buyer.
  • Analysts cast Broadcom as a leading alternative to Nvidia thanks to its ASICs, networking and advanced packaging, with JPMorgan noting work on an industry-first 2nm-class design for a customer and Tan committed to remain CEO through at least 2030.