Stacy Rasgon Says Broadcom (AVGO) $10 Billion Customer News Reminds Him of Nvidia Revenue Ramp

Core Insights - Broadcom Inc. (NASDAQ:AVGO) is gaining attention due to its potential deal with OpenAI, which could significantly boost its revenue [1][2] - The company is expected to generate $10 billion in AI infrastructure orders from a new customer, likely OpenAI, with AI revenues projected to exceed $40 billion next year [2] - Broadcom's focus on custom ASIC chips positions it well to capitalize on the demand for alternatives to Nvidia's offerings, potentially leading to substantial growth in revenue and profits [3] Revenue Growth - For the fiscal fourth quarter, Broadcom anticipates $6.2 billion in AI revenue, reflecting a 66% increase year-over-year [2] - The company has converted one of its prospects into a customer, contributing to a rapid revenue ramp similar to Nvidia's past growth trajectory [2] Market Position - Broadcom is strategically positioned as major companies seek custom chips to reduce reliance on Nvidia, enhancing its competitive edge in the semiconductor market [3] - The company's growth in hyperscale and connectivity product portfolios is increasing its revenue exposure to high-growth AI applications, offsetting declines in its legacy semiconductor business [5] Investor Sentiment - Broadcom was the largest contributor to a portfolio's performance in Q2 2025, driven by strong operating results and positive market sentiment towards high-growth momentum stocks [4]