Broadcom’s OpenAI Bet Could Be Bigger Than the Market Expects

Broadcom's partnership with OpenAI to develop custom AI chips (Jalapeño) could unlock a $200 billion revenue opportunity from their 10-gigawatt deployment deal. With Jalapeño's unveiling marking progress on schedule, significant revenue generation expected starting in 2027, and Broadcom's valuation down to 62x P/E (below its 3-year average of 80x), the stock appears well-positioned for long-term growth despite recent post-earnings decline.