Broadcom jumps on $10 billion AI chip deal

ReutersSep 5, 2025 1:36 PM

Shares of networking and custom AI chipmaker Broadcom AVGO.O rise about 14% to $348.94 in early trading

Co unveiled a $10 billion AI chip order from a new customer, reflecting optimism about its role in generative AI development

AVGO also forecasts Q4 revenue of $17.4 billion, ahead of estimates of $17.01 billion, according to data compiled by LSEG

Brokerage Bernstein says AVGO understands the AI chip business better than anyone and CEO Hock Tan has extended his contract through 2030, suggesting he sees strong long-term potential in the company

If premarket gains hold, co would add more than $160 billion to its $1.44 trillion market valuation, after crossing the trillion-dollar valuation last year

AVGO has risen 32% YTD

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