Broadcom Just Scored a Major OpenAI Win. Should You Buy AVGO Stock Here?

The AI chip market is growing at a rapid pace, with the global semiconductor industry expected to top $697 billion in revenue this year, an increase of more than 11% from 2024, according to Statista. Much of this growth is being driven by generative AI and rising demand from large tech platforms.

In this environment, Broadcom (AVGO) landed its fourth major AI customer, which multiple analysts believe to be OpenAI, through a $10 billion order for specialized AI server racks. The company disclosed on Sept. 5 that the customer placed production orders for its custom-designed artificial intelligence chips.