Broadcom’s OpenAI AI Chip Deal Eyes $8.2B 2026 Revenue Boost
Broadcom has entered a partnership with OpenAI to co-develop custom AI accelerators, targeting a doubling of its AI semiconductor revenue to $8.2 billion in 2026. Assenagon Asset Management cut its stake by 44.8% and Appleton Partners trimmed holdings by 4%, selling over 1.3 million and 4,940 shares respectively.
1. OpenAI Partnership Spurs Custom AI Accelerators
Broadcom has entered a strategic partnership with OpenAI to co-develop custom AI accelerators for large-scale models. The move represents a significant shift away from reliance on Nvidia GPUs and aligns Broadcom with leading AI service providers seeking specialized hardware.
2. Projected AI Semiconductor Revenue Growth
Broadcom projects its AI semiconductor revenue will double to $8.2 billion in 2026, driven by bespoke chip deployments in data centers. This positions the company as a formidable competitor to Nvidia in the high-performance AI market.
3. Institutional Stake Reductions
During the latest reporting period, Assenagon Asset Management reduced its Broadcom stake by 44.8%, selling 1.3 million shares, while Appleton Partners trimmed holdings by 4%, offloading 4,940 shares. These portfolio adjustments reflect varying institutional confidence levels amid Broadcom’s AI expansion.