Despite the initial announcement, the $100 billion potential deal between Nvidia Corp. (NASDAQ:NVDA) and OpenAI is yet to be finalized, the company’s CFO revealed on Tuesday.Deal With OpenAI Still In Early StageAt the UBS Global Technology and AI Conference in Scottsdale on Tuesday, Nvidia’s EVP and CFO, Colette Kress informed investors that the much-publicized partnership with OpenAI is still at the letter-of-intent stage, reported Fortune. Kress said that they still had not completed a “definitive agreeme ...

Broadcom (AVGO) is scheduled to report its fourth-quarter and fiscal 2025 results on Dec. 11. The stock is heading into earnings with strong momentum after recently hitting new highs. Investors’ enthusiasm for Broadcom stock stems from the expanding use of its custom semiconductor solutions across the artificial intelligence (AI) ecosystem. Further, AVGO stock got a notable boost when the company secured roughly $10 billion in orders for AI-focused racks powered by its XPUs, Broadcom’s custom accelerators ...

The large tech conglomerates are constantly trying to outdo one another in the non-stop race for artificial intelligence supremacy.Alphabet (GOOG 1.56%)(GOOGL 1.77%) entered the year in a precarious position. The company faced a lawsuit from the U.S. Department of Justice (DOJ) that threatened to significantly impact its business. Meanwhile, the emergence of conversational chatbots, like OpenAI's ChatGPT, prompted a wide swath of investors to question whether Google could maintain its dominant position in t ...

CNBC commentator Jim Cramer predicted OpenAI‘s future in light of the recent advancements in AI technology.On Tuesday, Cramer suggested on X that the introduction of Google’s (NASDAQ:GOOG) (NASDAQ:GOOGL)  Gemini 3 AI model could lead to OpenAI’s downfall. He anticipated a surge of tens of millions of users to the Gemini 3 platform.He posted, “It was only a matter of time before we heard from OpenAI about how it fell behind and the rush of tens of millions of users right to Gemini 3 would be upon us.”See Als ...

AI-related hardware stocks have been among 2025’s hottest stories, but not every supplier is positioned to ride the wave. While GPUs and memory names hog headlines, optical and laser companies quietly power the data center plumbing that lets massive AI models talk to each other, and that infrastructure is starting to attract Wall Street attention. Lumentum (LITE) has suddenly landed in the spotlight after Mizuho just raised its one-year price target to $325, a Street high, citing Google’s (GOOG) (GOOGL) r ...

Shares of Advanced Micro Devices (AMD) have cooled off in recent weeks, slipping 15% over the past month. The pullback follows a remarkable run. Notably, AMD stock surged nearly 97% over the last six months, powered by excitement around artificial intelligence (AI) and the company’s growing share in the data center market. Investors have also been encouraged by AMD’s expanding partnership network, including OpenAI and Oracle (ORCL). The company is positioning itself as the primary alternative to Nvidia (N ...

Broadcom and Amazon could be set to outperform next year.If you want to outperform the market, you're going to need to find stocks that can outpace the S&P 500. While that may not sound that difficult, J.P. Morgan analysts found that between 1980 and 2020, about two-thirds of stocks in the Russell 3000 Index, which extends the stock universe a bit, underperformed. However, those that outperform often do so by a wide margin. Given that context, let's examine two stocks I believe can outperform next year. Bro ...

Broadcom's chips have made headlines in recent days.Nvidia (NVDA 1.83%) has been one of the best stocks to own since the AI revolution kicked off in 2023. However, there are questions about its dominance heading into 2026. There is rising competition from AMD, but a relatively unheralded competitor could be challenging Nvidia.Who is this competitor that is making headlines in recent weeks? It's not Alphabet and its high-powered Tensor chips; it's Broadcom (AVGO +1.36%). Alphabet and Broadcom are set to bene ...

Changes may be coming in the artificial intelligence chip space.Nvidia (NVDA 1.83%) has been at the top of the artificial intelligence (AI) investing hierarchy since 2023. However, there could be a significant shift occurring.Up until a few days ago, it appeared that there were only a handful of options for AI hyperscalers to choose from when outfitting their data centers with parallel processors. Nvidia's graphics processing units (GPUs) have been by far the most popular choice, and AMD's GPUs have also ca ...

Core Viewpoint - Broadcom is positioned as a key player in the AI infrastructure market, with strong revenue visibility justifying its current stock valuation despite being elevated [1][2]. Financial Performance and Expectations - Broadcom will report its Q4 and fiscal year 2025 results on December 11, which could significantly influence 2026 expectations and share price [2]. - The stock is currently trading at 40.3 times forward earnings, indicating that much of the potential upside is already reflected in the price [2]. - The company anticipates Q4 revenue of nearly $17.4 billion, a 24% year-over-year increase, with semiconductor revenue expected to rise 30% to $10.7 billion and AI semiconductor revenue projected to surge 66% to $6.2 billion [14]. AI and XPU Adoption - Broadcom's custom accelerators (XPUs) are in high demand, with management forecasting AI revenue growth exceeding the estimated 50% to 60% year-over-year growth rate for fiscal 2025 [3]. - Each of Broadcom's three major hyperscaler clients is expected to deploy 1 million XPUs in AI clusters by 2027, indicating a multiyear adoption cycle [5]. - A $10 billion order for XPU-based AI racks from a fourth client is expected to begin volume shipments in Q3 of fiscal 2026 [6]. Partnerships and Market Position - Broadcom's partnership with Alphabet has been a significant growth catalyst, aiding in the development of Tensor Processing Units (TPUs) for AI applications [7]. - The company's open-source Ethernet-based networking solutions are being adopted by hyperscalers for AI clusters, providing alternatives to proprietary solutions [9][10]. Infrastructure Software Business - The infrastructure software segment now accounts for nearly 43% of Broadcom's total revenue, with strong demand from VMware's top customers for AI workloads [11]. - The transition of VMware's customers to deploy AI workloads is expected to take around two years, potentially leading to durable revenue streams for Broadcom [11]. Non-AI Business and Future Outlook - The non-AI chip business has remained flat, with expectations for modest improvement in Q4, although recovery may be gradual [12]. - Broadcom's adjusted EBITDA for Q4 is estimated to be 67%, with a significant backlog of $110 billion at the end of Q3, supporting future share price appreciation [14][17].