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Benzinga
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Broadcom's 10GW AI Deal With OpenAI Could Generate Up To $300 Billion Revenue, Analysts Highlight Growth From Custom Silicon And Networking Solutions

1. Broadcom partners with OpenAI for 10GW custom AI silicon deployment. 2. JP Morgan projects revenue of $250-$300 billion from the partnership. 3. Goldman Sachs raised Broadcom's price target to $380, citing strong demand. 4. Innovative technologies like 3D chip stacking enhance performance and revenue potential. 5. Broadcom remains a top pick in semiconductors due to its diversified model.

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FAQ

Why Very Bullish?

The partnership with OpenAI and the potential revenue generation are substantial, similar to prior industry partnerships that significantly boosted stock valuations. For instance, Nvidia's partnerships led to exponential growth, indicating strong market sentiment towards AI advancements.

How important is it?

The article highlights a pivotal partnership that will influence Broadcom’s future earnings. Given the potential revenue estimates and the strategic significance of the deal, its impact on AVGO’s stock is highly likely and possibly transformative.

Why Long Term?

The deployment is set for completion by 2029, allowing significant time for market adaptation and revenue generation, mirroring past cases like Intel’s long-term strategies that positioned them for future demand.

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