This article first appeared on GuruFocus.
Broadcom Inc. (AVGO, Financials) may be one of the lesser-known beneficiaries of the push by OpenAI to build proprietary AI chips.According to BNP Paribas, Broadcom and Celestica are winners from OpenAI’s Jalapeno inference chip, Seeking Alpha reported. The company said the chip was one of the main takeaways from the Hot Chips conference.The bigger topic is what the Jalapeno is. Big AI firms are increasingly creating or funding specialized accelerators customized to certain workloads.
Google has its TPUs, Meta has MTIA, Microsoft has Maia, and now OpenAI is adding Jalapeno to the mix. That change could open the door beyond Nvidia.Broadcom already has extensive exposure to custom silicon and networking, two areas that become more relevant as AI infrastructure gets more specialized. Meta’s use of Broadcom’s Tomahawk Ultra for scale-up networking was also highlighted by BNP.Agentic AI is driving greater innovation across CPUs, memory and networking as workloads become more complicated and inference becomes more memory hungry, the company claimed.The message for investors is simple: The AI trade is less about one dominant GPU provider and more about the entire infrastructure stack.
