Broadcom shares exploded 15% Friday after the chipmaker revealed it locked in a massive $10 billion custom AI chip order from a fourth mystery customer. Wall Street analysts immediately pointed to OpenAI as the likely buyer, marking a potential game-changer for both companies as AI infrastructure demand reaches fever pitch.
Broadcom just dropped a bombshell that sent shockwaves through Silicon Valley. The semiconductor giant's stock rocketed 15% Friday morning after CEO Hock Tan revealed during Thursday's earnings call that a fourth major customer had committed to $10 billion in custom AI chip orders - and Wall Street thinks it knows exactly who that customer is.
Analysts at Mizuho, Cantor Fitzgerald, and KeyBanc all pointed fingers at OpenAI as the mystery buyer. The timing couldn't be more telling - The Financial Times reported Thursday that the two companies had co-designed a custom chip set to hit markets next year, citing sources familiar with the partnership. OpenAI declined to comment when reached by CNBC.
"One of these prospects released production orders to Broadcom, and we have accordingly characterized them as a qualified customer for XPUs," Tan told analysts during the call. He added that the massive order "increased Broadcom's forecast for AI revenue next year, when shipments will begin." The company's custom AI chips, dubbed XPUs, represent a direct challenge to Nvidia's dominance in AI hardware.
The $10 billion commitment joins Broadcom's existing roster of tech titans. While the company never names its customers, analysts have long identified Google, Meta, and TikTok parent ByteDance as the first three major XPU clients. "During the call, the company surprised us by noting that it had secured a $10B order from a fourth XPU customer (we believe this is OpenAI)," Cantor analysts wrote in a Thursday note. "Shipments are expected to commence in 2026."
This isn't just another chip deal - it's validation of Broadcom's aggressive push into AI infrastructure. The company has emerged from Intel's shadow to join Nvidia at the front of the AI hardware race. Shares have skyrocketed 130% over the past year, pushing Broadcom's market capitalization past $1.6 trillion.
The financial impact is staggering. Tan hinted that AI revenue growth could exceed the 50% to 60% range he'd previously projected, with analysts now forecasting 76% growth that would drive AI revenue to $35 billion next year. Total company revenue for fiscal 2026 is expected to jump 30% to $81.8 billion from $63.1 billion this year, according to LSEG data.
