tech
Broadcom stock needs a win. The new OpenAI co-designed Jalapeno chip might do the trick
The news involving OpenAI, the creator of ChatGPT, comes as Broadcom stock fights to get back on track.
TL;DR
- Broadcom shares have dropped nearly 20% since early June.
- OpenAI and Broadcom have co-designed Jalapeno, a new custom AI accelerator chip.
- Jalapeno aims to lower token costs by improving performance per watt.
- The chip is described as an addition to, not a replacement for, Nvidia's infrastructure.
- Broadcom CEO expects initial deployment later this year, with a ramp-up in 2027 and full scale in 2028.
- The partnership is seen as potentially improving sentiment and solidifying support for Broadcom stock.
- Broadcom stock is currently trading at attractive valuation multiples.
- Other tech giants like Alphabet and ByteDance are exploring diverse chip design partners, potentially to reduce reliance on single suppliers.