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Broadcom CEO Hock Tan Secures Board Approval to Stay Through 2030 Amid AI Revenue Growth and Nvidia Rivalry
ByAinvest
Friday, Sep 5, 2025 12:10 am ET1min read
AVGO--
OpenAI, a leading AI company, is set to launch its first AI chip next year in partnership with Broadcom. This move mirrors similar efforts by Google, Amazon, and Meta to build custom chips for growing AI workloads. The new chip will be used internally by OpenAI, aiming to reduce its reliance on Nvidia [1].
Broadcom's strategic AI integration has been a significant factor in its growth. The company recently secured more than $10 billion in AI infrastructure orders from a new customer, which is expected to drive significant revenue growth for fiscal 2026 [3]. This new customer is likely one of the four potential clients mentioned earlier this year by Hock Tan. Broadcom has also launched the Tomahawk Ultra networking chip and a next-generation Jericho networking chip to speed up AI compute, further challenging Nvidia's dominance in the AI semiconductor industry.
The integration of NVIDIA’s Blackwell GPU architecture into Broadcom’s VMware Cloud Foundation (VCF) has positioned Broadcom as a key enabler of AI-native modernization. By embedding NVIDIA’s RTX PRO 6000 Server Edition GPUs, ConnectX-7 NICs, and BlueField-3 DPUs into VCF, Broadcom and NVIDIA are enabling enterprises to deploy generative AI and large language models (LLMs) in private cloud environments without sacrificing reliability and manageability [2].
The global cloud computing market is projected to reach $723.4 billion in 2025, with 50% of cloud compute resources expected to be AI-dedicated by 2029 [3]. Broadcom’s strong financial performance and market leadership in AI Ethernet switches are likely to continue driving its growth in this rapidly evolving landscape.
References:
[1] https://economictimes.indiatimes.com/tech/artificial-intelligence/openai-set-to-start-mass-production-of-its-own-ai-chips-with-broadcom-in-2026-ft/articleshow/123710960.cms
[2] https://www.ainvest.com/news/broadcom-strategic-ai-integration-nvidia-vcf-game-changer-enterprise-cloud-infrastructure-2509/
[3] https://www.marketscreener.com/news/broadcom-sees-strong-ai-growth-for-fiscal-2026-on-new-customer-addition-ce7d59d8df88f12d
NVDA--
Broadcom CEO Hock Tan has extended his leadership through 2030, overseeing a 26,750% stock surge since the company's public listing in 2009. Broadcom has posted a 22% YoY increase in revenue, driven by demand for custom AI accelerators, networking solutions, and VMware integration. The company is rapidly carving out a competitive edge in custom silicon and hyperscaler-grade networking, with analysts forecasting AI revenue to rise 60% to $20 bln in FY25 and $33 bln by 2026.
Broadcom CEO Hock Tan has extended his leadership through 2030, overseeing a remarkable 26,750% stock surge since the company's public listing in 2009. Under his guidance, Broadcom has posted a 22% year-over-year (YoY) increase in revenue, driven by strong demand for custom AI accelerators, networking solutions, and VMware integration. The company is rapidly carving out a competitive edge in custom silicon and hyperscaler-grade networking, with analysts forecasting AI revenue to rise 60% to $20 billion in FY25 and $33 billion by 2026.OpenAI, a leading AI company, is set to launch its first AI chip next year in partnership with Broadcom. This move mirrors similar efforts by Google, Amazon, and Meta to build custom chips for growing AI workloads. The new chip will be used internally by OpenAI, aiming to reduce its reliance on Nvidia [1].
Broadcom's strategic AI integration has been a significant factor in its growth. The company recently secured more than $10 billion in AI infrastructure orders from a new customer, which is expected to drive significant revenue growth for fiscal 2026 [3]. This new customer is likely one of the four potential clients mentioned earlier this year by Hock Tan. Broadcom has also launched the Tomahawk Ultra networking chip and a next-generation Jericho networking chip to speed up AI compute, further challenging Nvidia's dominance in the AI semiconductor industry.
The integration of NVIDIA’s Blackwell GPU architecture into Broadcom’s VMware Cloud Foundation (VCF) has positioned Broadcom as a key enabler of AI-native modernization. By embedding NVIDIA’s RTX PRO 6000 Server Edition GPUs, ConnectX-7 NICs, and BlueField-3 DPUs into VCF, Broadcom and NVIDIA are enabling enterprises to deploy generative AI and large language models (LLMs) in private cloud environments without sacrificing reliability and manageability [2].
The global cloud computing market is projected to reach $723.4 billion in 2025, with 50% of cloud compute resources expected to be AI-dedicated by 2029 [3]. Broadcom’s strong financial performance and market leadership in AI Ethernet switches are likely to continue driving its growth in this rapidly evolving landscape.
References:
[1] https://economictimes.indiatimes.com/tech/artificial-intelligence/openai-set-to-start-mass-production-of-its-own-ai-chips-with-broadcom-in-2026-ft/articleshow/123710960.cms
[2] https://www.ainvest.com/news/broadcom-strategic-ai-integration-nvidia-vcf-game-changer-enterprise-cloud-infrastructure-2509/
[3] https://www.marketscreener.com/news/broadcom-sees-strong-ai-growth-for-fiscal-2026-on-new-customer-addition-ce7d59d8df88f12d
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