Broadcom (AVGO) Soars 12.93% on $10B AI Chip Order

Broadcom's shares surged by 12.93% in pre-market trading on September 5, 2025, driven by a significant $10 billion AI chip order from a new customer, highlighting the company's growing role in the AI sector.

Broadcom's latest deal has sparked speculation that the unnamed customer could be OpenAI, given the timing and scale of the order. Analysts from J.P.Morgan, Bernstein, and Morgan Stanley have suggested that OpenAI is likely the new customer, as the company has been working with Broadcom to develop its first in-house chip.

This new order is expected to significantly boost Broadcom's AI revenue for fiscal 2026, with analysts predicting that AI sales could exceed $40 billion, up from previous expectations of $30 billion. Broadcom's CEO, Hock Tan, has also announced his commitment to staying at the helm for at least five more years, adding to the company's stability and investor confidence.

Broadcom's strong performance in the AI sector is further supported by its existing relationships with major cloud companies, including Alphabet's Google and Meta Platforms. The company's ability to secure large-scale AI chip orders underscores its position as a leading custom chip provider in the rapidly evolving AI landscape.