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Benzinga
4 hrs

Nvidia's Empire Just Took A Hit - Broadcom's $10 Billion Deal Is The Plot Twist

1. OpenAI’s $10 billion deal with Broadcom signifies AI hardware independence. 2. Broadcom's stock surged 15% reflecting immediate demand for their custom chips. 3. HSBC predicts Broadcom's custom chip business to exceed Nvidia's growth by 2026. 4. The partnership could redefine the semiconductor industry hierarchy significantly. 5. OpenAI aims for hardware autonomy to scale compute capacity for GPT-5.

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FAQ

Why Very Bullish?

Broadcom's partnership with OpenAI positions it strongly against Nvidia, enhancing revenue potential. Historically, such significant deals have led to sustained stock growth in tech sectors.

How important is it?

The shift in AI hardware strategy can significantly impact AVGO’s growth trajectory, making this partnership a crucial news point for investors.

Why Long Term?

As the AI industry evolves, revenues from custom chips are expected to grow over years, aligning with market demands and technological advancements.

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