Why Broadcom (AVGO) stock is rocketing today

Core Insights - Broadcom's stock price surged 10% following a partnership announcement with OpenAI, marking a 55% gain year-to-date [1][2] - The collaboration aims to develop and deploy 10 gigawatts of custom AI accelerators, with the rollout scheduled from the second half of 2026 to the end of 2029 [2][3] - Analysts are optimistic about Broadcom's future, with several firms issuing positive ratings and price targets ranging from $400 to $420 [4][5] Company Developments - The partnership involves OpenAI designing the AI accelerators while Broadcom will co-develop and manufacture the hardware [2] - The project will utilize Broadcom's Ethernet and connectivity solutions to enhance scalability across OpenAI's data centers [3] - OpenAI's CEO emphasized the importance of this partnership for building the necessary infrastructure for AI [4] Analyst Ratings - Aletheia Capital initiated coverage with a 'Buy' rating and a $400 price target, anticipating strong AI-driven revenue growth [5] - Bernstein reiterated an 'Outperform' rating with the same $400 target, highlighting solid demand in computing [5] - KeyBanc maintained an 'Overweight' rating with a $420 target, expecting strong earnings in October and positive guidance for January [5]