Broadcom Inc. (AVGO) is making a bold move into the artificial intelligence (AI) landscape, scoring major wins with two key AI ASIC programs. According to JPMorgan analyst Harlan Sur, Broadcom has secured OpenAI’s first and second-generation AI ASIC programs, solidifying their position as OpenAI’s fourth major AI ASIC partner. Adding to this success, Broadcom has also gained a fifth major AI ASIC customer, setting the stage for significant growth in 2026.
What makes Broadcom stand out in the highly competitive AI chip market is their cutting-edge chip technology. Sur highlights that Broadcom’s 2nm/3nm AI ASIC reference platform, meticulously developed over the past two years, played a crucial role in winning these programs. This platform, incorporating the industry’s first 3D SOIC (chip stacking) technology, maximizes transistor density and performance while minimizing power consumption. This technological prowess likely contributed significantly to securing these new AI programs.
Broadcom’s success isn’t limited to OpenAI. They are also expanding their AI reach with tech giants Google’s parent company Alphabet Inc (GOOG, GOOGL) and Meta Platforms Inc (META). Sur forecasts that Broadcom will be fully operational with Google’s next-generation 3nm TPU AI processor by the end of this year, generating over $8 billion in revenue this year and an estimated $10 billion next year. Moreover, Sur predicts Meta will become another major customer, contributing substantially to Broadcom’s AI revenue growth in the years to come.
Broadcom is positioning itself to capitalize on a massive $150 billion+ AI semiconductor opportunity over the next five years, driven by the robust demand for custom chip designs among large cloud companies and original equipment manufacturers (OEMs). With the AI market expanding at a projected 30-40% annual growth rate, Broadcom’s recent victories with OpenAI and their fifth major customer are primed to play a critical role in this revenue surge. As Broadcom continues to secure high-profile AI partnerships and refine its chip technology, the company is poised for significant growth in the AI semiconductor market. With a robust pipeline and a positive revenue outlook, Broadcom remains a key player to watch in the AI space.
