This AI Stock Just Hit a New High, and It's Still a Buy

Group 1 - Broadcom has significantly benefited from the AI boom, with its stock rising nearly 50% this year and reaching all-time highs, indicating that there is still a substantial opportunity for growth ahead [2] - The company's advantage lies in its custom AI chip business, which focuses on designing chips for specific workloads in collaboration with hyperscalers, contrasting with Nvidia's generic GPU offerings [3][4] - Broadcom has established itself by developing application-specific integrated circuits (ASICs) that outperform GPUs in performance and energy efficiency for designated tasks [4] Group 2 - The company has secured major clients, including Alphabet, Meta Platforms, and ByteDance, with these three customers representing a market opportunity of $60 billion to $90 billion by fiscal 2027 [5] - A recent revelation of a fourth customer, believed to be OpenAI, with an order exceeding $10 billion for fiscal 2026, suggests accelerated growth for Broadcom's custom chip business [6] - OpenAI's partnership is pivotal as it seeks to reduce reliance on Nvidia and manage costs, aligning with the increasing demand for chips that lower inference costs in the expanding AI workload market [7]