Nvidia delays are OpenAI and Broadcom's gain — buy the chipmaker dip on Broadcom
Nvidia's highly anticipated AI server is reportedly delayed, which might frustrate customers who need hardware now. Meanwhile, Broadcom just teamed up with OpenAI to make custom AI chips and its stock is trading at a 24% discount from its recent peak.
Idea
Broadcom is sitting 24% off its highs but just unveiled a new custom AI chip partnership with OpenAI, showing their pipeline is firing on all cylinders. When you combine Broadcom's discounted valuation and new catalyst with reports that Nvidia's next-gen server rack is delayed by over a year, the thesis writes itself: large tech companies desperate to deploy AI cannot afford to wait for Nvidia's delayed systems. They will accelerate orders for alternative chipmakers like Broadcom, making it a prime catch-up candidate while the market is distracted by Nvidia's struggles.