By Unknown
Publication Date: 2026-10-16 16:02:00
Key Points
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Broadcom is helping artificial intelligence companies design and fabricate their own data center chips, giving them an alternative to Nvidia’s GPUs.
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OpenAI, Anthropic, Alphabet, and Meta Platforms are just some of Broadcom’s top customers at the moment.
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Broadcom stock only needs a modest gain for its market cap to cross $2 trillion again, but its valuation might be a barrier in the near term.
As I write this on Oct. 14, there are 12 publicly traded American companies with market capitalizations of at least $1 trillion, and six of them are worth $2 trillion or more. Broadcom(NASDAQ: AVGO) was recently in that exclusive club, but its stock has fallen by 26% from its June peak as investors worry about the sustainability of the artificial intelligence (AI) infrastructure spending boom.
Over the last few months, AI labs like Anthropic, OpenAI, and xAI floated plans to slow down the pace of AI development to lower the potential risks to humanity. Moreover, many businesses have…