Broadcom Stock Soars as Its AI Chips Challenge Nvidia

Broadcom stock surged more than 9% to a record high last week after quarterly results showed its AI chips are emerging as a serious alternative to those of Nvidia, Laura Bratton reported for Yahoo Finance.

Broadcom forecast AI chip revenue of $6.2 billion in the fourth quarter, topping Wall Street’s $5.8 billion consensus. (Photo: Cmglee Wikimedia Commons)

The rally added about $135 billion to Broadcom’s market capitalization, pushing it to nearly $1.6 trillion. Shares closed above $335, setting a fresh record. Nvidia slipped 2.7% and Advanced Micro Devices dropped 6.6%.

Broadcom forecast AI chip revenue of $6.2 billion in the fourth quarter, topping Wall Street’s $5.8 billion consensus, according to Bloomberg data.

The company also secured a new customer — reportedly OpenAI — whose orders could add $10 billion in revenue in 2026.

Broadcom is developing an AI chip using a cutting-edge “2-nanometer” manufacturing node for one of its clients, an industry first, according to JPMorgan analyst Harlan Sur. William Blair analyst Sebastien Naji said Broadcom’s latest chip designs are “cementing” its role as “the leading alternative” to Nvidia.