$AVGO (Broadcom) is one of the most important AI chip stories nobody is talking about loudly enough.
Current price: ~$374.50.
52-week range: $269.58-$495.00. Down 27% from its peak.
Here's the full picture heading into Q3:
The WIN: OpenAI and Broadcom unveiled their first custom AI chip together — named "Jalapeño." It's a purpose-built inference processor designed specifically to support ChatGPT's future AI models at scale, with OpenAI now testing samples. This is the first time OpenAI has its own silicon, designed entirely around Broadcom's architecture.
The LOSS: Google reportedly chose MediaTek — not Broadcom — to help build its next-generation TPUv9 AI chip, known as "Triggerfish." Broadcom had designed Google's previous TPU chips for years. Losing even partial Google chip business to a rival is not a small event for a company where custom AI accelerators are one of its highest-margin growth vectors.
The big picture:
→ Broadcom surpassed a $2 trillion market cap in April 2026 — the sixth company in history
→ AI revenue is now the engine: custom AI accelerators for Google, Meta, and now OpenAI
→ Down 15% over the past month amid the broader tech selloff
→ 26 analysts: Buy consensus, average target $501.58 — implying 39% upside
→ 21.1% ROIC — best-in-class capital efficiency
→ Jefferies analyst Blayne Curtis: "The recent pullback has created a buying opportunity"
→ 37,000 employees. More than 99% of all internet traffic runs on Broadcom's technology.
Winning OpenAI. Losing some Google. Down 27% from the peak.
Broadcom is either a generational buy or a cautionary tale about customer concentration risk. Possibly both.
$AVGO $NVDA $GOOGL $MSFT #Broadcom #AI #Semiconductors #CustomChips #Investing #StockMarket #NFA #Invest2Grow
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