Core Insights - Broadcom and OpenAI have initiated a multi-year partnership to deploy 10 gigawatts of custom AI silicon and rack-level systems, enhancing performance and scalability of next-generation technologies [1][3][6] Company Developments - JP Morgan analyst Harlan Sur maintains an Overweight rating on Broadcom with a price target of $400, while Goldman Sachs analyst James Schneider has reiterated a Buy rating and increased the price target from $360 to $380 [2][6] - The partnership with OpenAI allows Broadcom to integrate compute Application-Specific Integrated Circuits (ASICs) with its Ethernet, PCIe, and optical connectivity solutions, extending beyond compute chips to networking silicon and server racks [1][3][6] Financial Projections - Each gigawatt of capacity is estimated to generate $25–$30 billion in revenue for Broadcom, leading to a total potential revenue of $250–$300 billion for the 10 GW infrastructure [4] - Deployment is expected to start in the second half of 2026 and be completed by 2029, with initial annual revenue projected between $70 billion and $90 billion over four years [5] - Goldman Sachs estimates that each gigawatt of AI datacenter deployment could yield $10–$15 billion in incremental revenue and contribute approximately $1.00–$1.50 in EPS for Broadcom [7] Market Position - Broadcom is positioned as a leader in custom silicon and networking solutions, with a strong competitive stance against companies like Advanced Micro Devices (AMD), which has a 6GW partnership with OpenAI [6][7] - The announcement indicates a growing trend towards custom silicon in the accelerator market, reinforcing Broadcom's leadership in custom ASIC and Ethernet networking [8]