Broadcom ( (AVGO) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Broadcom is making significant strides in the AI chip market, setting ambitious sales targets to bolster its competitive stance against industry leader Nvidia. The company’s board has extended CEO Hock Tan’s contract, incentivizing him with a potential stock compensation worth hundreds of millions if Broadcom achieves $120 billion in AI product sales by 2030. This aggressive goal underscores Broadcom’s commitment to expanding its footprint in the AI sector, particularly through its custom AI accelerators, which have already driven record revenue growth in the third quarter of fiscal 2025.
The company recently secured a major new client, reportedly OpenAI, which has placed orders worth $10 billion for custom AI chips. This development is expected to further enhance Broadcom’s revenue in the coming quarters. Analysts are optimistic about Broadcom’s long-term prospects, with the stock receiving a strong buy consensus rating and a price target suggesting an 11.6% upside potential. As Broadcom continues to challenge Nvidia’s dominance, its strategic focus on custom AI chips positions it well for future growth in the rapidly evolving AI market.