Catenaa, Friday, September 05, 2025- Broadcom shares surged over 10% Friday morning after the chipmaker posted quarterly results that topped Wall Street expectations amid booming AI demand.
The company announced late Thursday that it generated $15.95 billion in revenue in its fiscal third quarter, as AI revenue jumped 63% surge to $5.2 billion.
CEO Hock Tan said the chip giant expects AI semiconductor revenue could reach $6.2 billion in the current quarter as customers continue to ramp up their AI capacity.
Investors also cheered news that the company had secured $10 billion in orders from a new client, which media reports have identified as OpenAI.
The deal solidifies the company’s role as a leading custom chip provider amid Big Tech’s push to diversify beyond Nvidia’s pricey and supply-constrained artificial intelligence processors.
Broadcom shares were up over 10% on Friday. The stock had gained about 45% so far in 2025, slightly outpacing the gains of AI chip rival Nvidia.
If gains hold, the chipmaker would add more than $200 billion to its $1.44 trillion market valuation, after crossing the trillion-dollar valuation last year.
It’s also worth pointing out that the stock traded more than 31 million shares on Thursday, its highest turnover since late June, indicating portfolio positioning ahead of the company’s earnings report.
