Broadcom just went all-in as it eyes Nvidia’s crown. Its next-gen AI chip and a gargantuan OpenAI partnership are set to fuel data centers with energy fit for a metropolis. However, this leap is anything but guaranteed, and its rapid growth could be a mirage as Big Tech undermines its core business.
- On Tuesday, Broadcom unveiled its new Thor Ultra chip to link hundreds of thousands of AI processors — directly targeting Nvidia’s networking turf while aiming to ~7x AI sales by 2027.
- It comes after the OpenAI deal triggered to surge by 12% on Monday — with Bernstein analysts expecting it to yield $100B+ amid Sora’s booming video generation demands.
What’s at stake: While data centers could soon guzzle 12% of America’s electricity, Broadcom is wagering more than any rival on OpenAI. CEO Sam Altman’s vision is grand, but financially murky — and if it stumbles, Broadcom’s custom buildout may be tough to repurpose. Despite these evident risks, still trades at a richer forward valuation than the actual market king, and with’s earnings coming soon, we’ll see if any “underdogs” are actually making a dent.
