Broadcom Shares Correct After OpenAI Chip Deal Rally

Broadcom's stock retreated 4% to $349 after a 10% surge on Monday, when the semiconductor giant announced a strategic partnership with OpenAI to develop custom AI accelerators. The deal, which involves building up to 10 gigawatts of AI chips—equivalent to a large city's power consumption—marks a pivotal MOVE in the race for AI infrastructure dominance.

Trading volume hit a one-month high as technical indicators turned bullish, with the RSI crossing above 50. Year-to-date gains now stand at 50%, positioning AVGO for one of its strongest annual performances. Analysts highlight the multi-year agreement's potential to solidify Broadcom's position in the high-margin AI semiconductor market, where demand for bespoke silicon solutions continues to accelerate across industries.

For OpenAI, the collaboration supports scaling infrastructure for ChatGPT's 800 million weekly users and its emerging Sora video platform. "This isn't just about chips—it's about building the computational backbone for AGI," said one industry insider, speaking on condition of anonymity.