Overview

• Broadcom said it booked a $10 billion one-time order from a new customer, widely reported to be OpenAI, as AI revenue rose 63% to $5.2 billion with guidance to $6.2 billion next quarter.
• Shares of Broadcom jumped roughly 9% to 11% after earnings and continued higher on heavy volume, with multiple banks lifting price targets as reports flagged additional custom-chip orders in the pipeline.
• Citi cut Nvidia’s price target to $200 from $210 and now models about a $12 billion hit to 2026 GPU sales as buyers increase spending on Broadcom XPUs and Google TPUs, though it kept a buy rating.
• Nvidia remains the GPU leader with an estimated 92% data center share and a long-term view of $3 trillion to $4 trillion in global data center capex by 2030, while UBS reiterated a buy and flagged potential upside tied to the reported 15% H20 China fee arrangement.
• Market and industry analysis point to a shifting compute mix as ASICs gain traction for inference, with some commentary suggesting OpenAI’s Broadcom orders could be incremental rather than a direct replacement for Nvidia purchases.