Broadcom

words.During Thanksgiving week, the S&P 500, Dow and Nasdaq posted weekly gains, yet only the S&P and Dow ended November positive, while the Nasdaq slipped ~2% after AI‑valuation concerns. Apple led the portfolio, topping three consecutive all‑time highs on strong iPhone 17 demand and a forecast to surpass Samsung in 2025 shipments. Broadcom surged 18% weekly on rising AI‑chip demand, while Nvidia fell 1% but was called a buying opportunity. Dick’s Sporting Goods’ results boosted Nike, and the fund added Palo Alto Networks after an earnings beat and Procter & Gamble as a defensive hedge.

Apple and Broadcom stocks surged to new intraday highs as strong product demand fuels AI‑related growth. Apple is projected to outsell Samsung in 2025, shipping about 243 million iPhones and capturing 19.4% of the global market, a rebound driven by the iPhone 17 and a return to a $4 trillion market cap. While its AI strategy remains vague, Apple’s 2 billion‑device ecosystem offers monetization potential. Broadcom, boosted by a Goldman Sachs target‑price raise, expects AI revenue to jump 128% YoY in FY2026, supported by its role in Google’s TPUs and prospective Meta adoption. Both firms are well positioned to benefit from accelerating AI adoption.

Alphabet’s (GOOGL) stock surged, boosting AI-related stocks like Broadcom (AVGO) and Micron Technology (MU), fueled by AI optimism. Broadcom’s role in custom AI chip design for Alphabet is driving investor enthusiasm. However, some analysts worry about Alphabet’s potential dominance and its effect on competition and broader market stability. Concerns also extend beyond AI, with analysts suggesting potential overvaluation in the broader U.S. market.

Broadcom (AVGO) shares surged, fueled by investor enthusiasm for AI-linked stocks, particularly due to its key role in enabling Alphabet’s (GOOGL) AI ambitions. As a supplier of application-specific integrated circuits (ASICs) for hyperscale computing, Broadcom is benefiting from Google’s increasing demand for custom AI chips like Tensor Processing Units (TPUs). Analysts are raising price targets, citing the growing importance of ASICs in AI infrastructure as companies seek performance and efficiency gains beyond general-purpose GPUs.

Wall Street saw mixed trading amid optimism about avoiding a government shutdown. The Dow hit a record high, while tech stocks pressured the S&P 500 and Nasdaq. Anthropic announced a $50 billion AI infrastructure investment, including data centers in New York and Texas. JPMorgan Chase forecasts $5 trillion in global AI infrastructure investment by 2030. TD Cowen raised Broadcom’s price target, citing increased AI spending, but acknowledges high expectations are already priced in. The focus shifts to future revenue expectations after the earnings call.

Celestica is strategically positioning itself as a key infrastructure provider for the burgeoning AI market. CEO Rob Mionis emphasizes the company’s focus on delivering critical hardware, stating they are “laying the tracks” for AI’s growth. Recent earnings surpassed expectations, boosting investor confidence with the stock reaching a 52-week high. Celestica’s success stems from its shift to high-margin design/manufacturing and partnerships like with Broadcom, enabling provision of advanced data center solutions for hyperscalers and enterprises, capitalizing on increasing demand for AI infrastructure.

OpenAI is aggressively pursuing strategic partnerships and hardware development, signaling a shift from solely focusing on algorithms to prioritizing infrastructure and custom silicon. Collaborations with Broadcom and acquisitions like Jony Ive’s startup aim to optimize AI accelerators and create innovative AI-native devices. The Stargate initiative solidifies OpenAI’s control over AI infrastructure through deals with Nvidia and AMD. Furthermore, OpenAI is actively cultivating its developer ecosystem, transforming ChatGPT into an AI operating system and fostering tight integration to enhance its platform’s stickiness. This vertical integration strategy mirrors those of Apple and Microsoft, aiming to establish OpenAI as a dominant force in the AI landscape.

Key market takeaways include: Broadcom shares jumped after OpenAI’s custom chip partnership was announced. Trump brokered a Gaza peace deal, but Red Sea shipping remains threatened due to Houthi rebels. China’s rare earth export controls are boosting U.S. rare earth miner stocks. New car prices hit a record high, exceeding $50,000, while auto loan delinquencies rise for those with lower credit scores, highlighting economic disparity.

Broadcom CEO Hock Tan anticipates AI to significantly impact global GDP, potentially increasing “knowledge-based” industries’ share from 30% to 40%. Broadcom is strategically partnering with companies like OpenAI to develop AI accelerators and collaborating with multiple cloud providers, securing substantial chip orders, including $10 billion from one client. The company’s focus is on AI infrastructure and revenue-generating partnerships, reflecting confidence in the essential role of specialized hardware in AI’s growth.

Broadcom and OpenAI are collaborating to develop and deploy 10 gigawatts of custom AI accelerators, signaling intensified competition in AI infrastructure. This partnership, following OpenAI’s alliances with Nvidia, Oracle, and AMD, aims to diversify its supply chain and optimize compute resources. The initiative involves customized networking, memory, and compute components built on Broadcom’s Ethernet stack, potentially reducing OpenAI’s costs and enhancing efficiency. Broadcom’s stock surged, reflecting the growing demand for custom AI chips. OpenAI aims to expand compute capacity to meet the demands of advanced AI models and future superintelligence.