Broadcom unveils custom OpenAI chip, shares stay in focus on NASDAQ-100

By Daniel Hoffmann, Chart & Technicals desk. Reviewed prior to publication on 2026-06-25, 20:01.

Broadcom Inc. (US11135F1012) has intensified its role in artificial intelligence infrastructure through a new custom chip developed with OpenAI, while its AVGO shares remain a heavyweight in the NASDAQ-100 and S&P 500 indices. Reuters reports that the jointly designed "Jalapeño" inference processor targets lower power usage and computing costs for large language models in OpenAI data centers. Reuters coverage of the OpenAI chip launch

What Reuters and others report

According to Reuters, OpenAI and Broadcom have collaborated on Jalapeño as a custom accelerator optimized for AI inference workloads, with the goal of improving performance per watt and reducing unit cost versus general-purpose GPUs in large-scale deployments. Detailed Reuters report on Jalapeño The chip is aimed at serving OpenAI’s fast-growing base of large language model applications, which require highly efficient processing to keep operating expenses in check.

Market commentary compiled by MarketBeat notes that Broadcom stock has recently been supported by a series of AI-related headlines, including the Jalapeño announcement and ongoing demand for network and accelerator components in hyperscale data centers. MarketBeat roundup of recent AVGO news Commentators highlight that Broadcom competes and partners in a segment that also includes Nvidia and Qualcomm, with AI infrastructure spending remaining a key driver for the sector.

Analyst stance and AI chip sector context

On finanzen100, which tracks the NASDAQ listing via its German quotation, Broadcom is classified in the semiconductor industry, with UBS recently maintaining a Buy rating on AVGO, underlining confidence in the company’s position in high-performance networking and custom silicon for cloud providers. finanzen100 overview including UBS rating note The stock is regularly compared with peers like Nvidia and AMD when investors assess AI hardware exposure.

Reuters sector coverage points out that recent strong guidance from Micron and ambitious data center chip targets from Qualcomm have fueled a broader rally in AI-exposed semiconductor names, pushing the combined market value of leading AI chip stocks toward the 400 billion dollar mark. Reuters analysis of the AI chip stock rally Broadcom is regularly mentioned in this group because of its networking ASICs, custom accelerators and switch chips for large cloud operators.

How Broadcom makes its money

Broadcom generates the bulk of its revenue from semiconductor solutions for networking, broadband, wireless, storage and industrial markets, complemented by a sizeable infrastructure software portfolio built through acquisitions such as CA Technologies and VMware. In the data center, Broadcom supplies Ethernet switch chips, custom AI accelerators like Jalapeño for OpenAI, and ASICs for hyperscale cloud providers that require tightly optimized silicon for high-volume workloads.

Where the Broadcom stock trades today

The Broadcom shares (US11135F1012) trade on NASDAQ under the ticker AVGO, with the last available closing price quoted at 382.07 US dollars as of 2026-06-24, 20:00, according to the delayed NASDAQ data referenced by Onvista.

Disclaimer: This article is for informational purposes only and does not constitute investment advice, investment recommendation or an invitation to buy or sell securities. Investors should conduct their own research and, where appropriate, consult a qualified financial adviser before making investment decisions.