Broadcom Becomes Latest Chipmaker to See Its Stock Jump on a Deal with OpenAI. Is It Too Late to Buy the Stock?

Broadcom (NASDAQ: AVGO) became the latest chipmaker to see its stock jump after announcing a partnership with ChatGPT owner OpenAI. This follows in the footsteps of Nvidia and Advanced Micro Devices, which also struck deals with the AI model company, although no equity is exchanging hands as with the prior deals.As part of its deal, Nvidia will invest up to $100 billion in OpenAI, while OpenAI will get up to a 10% equity stake in AMD, as part of their partnership.As for the Broadcom-OpenAI collaboration, the two companies will join forces to develop and deploy 10 gigawatts of custom AI accelerators that will also use Broadcom's networking and Ethernet technology. A 1-gigawatt data center translates to roughly $50 billion, with about $35 billion of that going toward chips based on Nvidia's chip prices.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool