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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
In a move that intensifies the custom AI chip race, OpenAI and Broadcom have unveiled Jalapeño, OpenAI's first dedicated chip, in June, according to media reports. The partnership aims to reduce OpenAI's dependency on Nvidia GPUs, potentially challenging Nvidia's dominant position in the AI chip market. Broadcom expects its AI chip revenue to exceed $100 billion by fiscal 2027, underscoring surging demand for custom solutions.
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Sign InThe announcement comes amid fierce competition in the AI chip space. Per market data, Broadcom (AVGO) closed at $365.02 on June 26, 2026, while Nvidia (NVDA) closed at $192.53, AMD at $532.57, Intel (INTC) at $132.87, and TSMC (TSM) at $432.35. Broadcom's revenue forecast highlights how custom chips could become a key growth driver, putting pressure on Nvidia, which has been the biggest beneficiary of the AI boom.
On the trading front, AVGO traded in a range of $363.83 to $373.69 on June 26, while NVDA ranged between $191.22 and $195.55. Investors are watching for further announcements from both companies on custom silicon plans, and volatility may increase as competition heats up. With no major direct economic catalysts on the near-term calendar, attention will turn to Q3 earnings to assess the impact of this partnership on market shares.