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Broadcom Developing an AI Chip With Big New Customer OpenAI, Reports Say

1. Broadcom partners with OpenAI to develop its first AI chip. 2. OpenAI reportedly committed $10 billion in orders to Broadcom. 3. Broadcom's Q3 earnings surpassed estimates, boosting stock by 10%. 4. This partnership challenges Nvidia's AI market dominance. 5. Broadcom shares have risen over 30% year-to-date.

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FAQ

Why Very Bullish?

The partnership with OpenAI signals strong demand for AVGO’s technology in AI, potentially increasing revenue significantly, similar to Nvidia's market performance after their AI advancements.

How important is it?

The announcement impacts AVGO's market position profoundly, potentially driving significant short and long-term growth due to AI demand.

Why Long Term?

The collaboration and exclusive chip development will likely create sustained revenue streams for years, akin to long-term contracts seen in other tech partnerships.

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