Broadcom’s $10B customer 9/5/25

TechCheck

CNBC

Management, Cnbc, Tech, Faang, Investing, Business, Disruptors, Technology

4.5 • 66 Ratings

🗓️ 5 September 2025

⏱️ 4 minutes

🔗️ Recording | iTunes | RSS

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Summary

Broadcom shares surging 15% today after posting strong earnings and the reveal of a new mystery customer that has secured $10B in new orders. We did into who the customer could be and what it means for the broader AI trade.

Transcript

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0:00.0	Stocks overall bit weaker, but shares of Broadcom surging today after strong earnings and disclosing a new mystery customer with $10 billion in orders.
0:08.6	Christina Parsons and Evelas has the details in today's tech check segment. Christina.
0:12.8	Sarah, that $10 billion order could shatter in video's AI dominance.
0:16.7	An open AI appears to be that mystery customer behind it.
0:20.6	Broadcom CEO, Hawk Tan revealed yesterday on the call
0:23.1	that they secured, like you said, 10 billion in orders
0:25.1	from a, quote, fourth customer for custom AI chips
0:28.1	with shipments beginning in 2026.
0:30.6	JPMorgan and Morgan Stanley analysts,
0:32.9	as well as the Financial Times,
0:34.2	believe this is Open AI joining Google,
0:36.8	meta and bite dance at Broscom's latest megaAI, joining Google, meta, and ByteDance at Brosscom's
0:39.0	latest mega customer. The deal, though, really underscores a shift in AI compute by betting
0:44.5	on Broadcom custom chips over Nvidia's powerful but pricey GPUs. Open AI is making its clearest
0:51.9	break yet from Nvidia's ecosystem, and this after using only chips from NVIDIA and AMD to power its AI models over the last little while. The contradiction though is stark. Invidia's CEO Jensen Wong has been, well, let's call it dismissive of custom chip threats. At NVIDIA's last tech conference, DTC in March, CEO Jensen Wong said, quote, a lot of A6 get canceled.
1:12.7	A6 are the custom chips, and he believes most custom chip projects won't do much because, quote,
1:17.3	the A6 still has to be better than the best, implying that GPUs are the best.
1:21.9	Yet, Nvidia has quietly established its own custom chip division, this according to the
1:26.8	commercial times, recruiting talent from Taiwan's chip division. This according to the commercial times,
1:27.7	recruiting talent from Taiwan's chip firms.
1:30.2	The company appears to be making
1:32.3	or taking the competitive threat seriously
	...

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