Broadcom (AVGO)'s $10B AI Customer Could Be OpenAI, Analysts Suggest

Broadcom Inc. (NASDAQ:AVGO) is one of the Buzzing AI Stocks on Wall Street. On September 5, KeyBanc analyst John Vinh raised the price target on the stock to $400.00 (from $330.00) while maintaining an Overweight rating.

Shares of the stock soared on Friday after the company announced on its earnings call that it has secured a new $10 billion customer. According to Broadcom CEO Hock Tan, a fourth large customer had put in orders for $10 billion in custom artificial intelligence chips, known as XPUs.

“One of these prospects released production orders to Broadcom, and we have accordingly characterized them as a qualified customer for XPUs.” -Hock Tan

Analysts at Keybanc believe that the new customer is AI startup OpenAI.

“Fourth AI Customer Expected to Add an Incremental $10B in FY26; AVGO reported strong F3Q (July) results and guided F4Q (October) higher. Upside was driven by strong AI semi revenues and VMW. In F3Q, AI semis grew 63% y/y to $5.2B vs. +46% y/y last quarter and is expected accelerate to +66% y/y in F4Q. "

"Most notably, AVGO indicated it has secured orders for a fourth AI customer, which we believe is Open AI, in addition to (Google, META, ByteDance), with revs expected to contribute an incremental $10B in FY26 (October). As such, we’re raising our forward estimates meaningfully and our PT to $400. We’re impressed by the addition of a fourth AI customer and remain OW. Finally, Hock Tan indicated he’ll continue as CEO through 2030 at least.

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

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Disclosure: None.