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Broadcom (NasdaqGS:AVGO) has secured a multi year supply agreement to provide custom AI chips to OpenAI.
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The company is expanding its role as a custom AI silicon partner for hyperscalers, including Google and other large cloud providers.
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At the same time, Broadcom is dealing with VMware customer churn tied to subscription changes and fresh geopolitical and regulatory risks.
Broadcom, trading at about $331.3 per share, is involved in some of the highest profile AI infrastructure build outs through its custom ASIC work with OpenAI and major cloud platforms. The stock shows a very large 3 year return and a 1 year return of 51.1%, which reflects the degree of investor focus on its role in AI and data center infrastructure.
For investors, a key tension is that Broadcom is participating in multibillion dollar AI programs with a…