CMB Stock News Of The Day 📰🗞️🗞️📈📉

“Broadcom Posts Strong Q4 Beat as Custom Chip Demand Surges” 🚨🚨🚨

Broadcom (AVGO $417.69, -1.45%) delivered another powerful quarter, reporting better-than-expected revenue and earnings for fiscal Q4, reinforcing its position as one of the fastest-rising players in the AI hardware ecosystem. Shares moved higher in postmarket trading as investors reacted to the strong results and upbeat guidance.

Alongside the earnings beat, Broadcom announced a dividend increase to $0.65 per share, up from $0.59—another signal of financial strength and management confidence.

🔥 Custom Chips Are Having Their Moment

Broadcom’s surge is tightly linked to the explosive demand for custom silicon, particularly ASICs designed for AI workloads. Several key developments have fueled momentum:

• Google’s Gemini 3, widely praised for its performance, was trained on custom TPUs co-designed with Broadcom.

• In October, OpenAI tapped Broadcom to deliver 10 gigawatts of AI accelerators starting next year—one of the largest custom silicon deals announced to date.

This strategic positioning gives Broadcom a growing edge in the race for high-performance, energy-efficient AI hardware.

📈 Outpacing Nvidia and AMD

Since the market bottom on November 20, Broadcom has dramatically outperformed AI chip giants Nvidia (NVDA -1.55%) and AMD (AMD +0.01%). Its stock rally has been so strong that:

• Broadcom’s 12-month forward P/E premium over Nvidia recently hit a record high.

• Analysts at Bank of America argue that the valuation gap signals traders increasingly expect Broadcom to take AI market share from Nvidia, the industry’s dominant leader.

If that thesis continues to play out, Broadcom’s transformation from networking powerhouse to custom AI chip juggernaut may just be beginning.

📊 Big Picture

With custom silicon becoming essential for next-gen AI models, Broadcom’s vertically integrated approach and marquee partnerships are placing it at the center of the AI acceleration boom. Its latest quarter shows not just momentum—but growing structural advantage.