Broadcom (AVGO) Price Target Raised on Massive OpenAI Custom Chip Partnership

Broadcom Inc. (NASDAQ:AVGO) is one of the AI Stocks in Focus on Wall Street. On October 13, Mizuho raised its price target on the stock to $430.00 from $410.00 while maintaining an Outperform rating. The raised price target follows OpenAI’s announcement of a custom ASIC partnership with the chipmaker.

The companies announced a collaboration on Monday for 10 gigawatts of custom AI accelerators starting in 2026. OpenAI will engage in the design of the accelerators and systems, which will be developed and deployed in partnership with Broadcom.

The collaboration marks OpenAI’s third gigawatt-scale deal in the past few weeks. The company is planning to deploy 10 gigawatts of its custom ASIC, code-named Titan. According to Mizuho, this could potentially be worth an estimated $150-200 billion for Broadcom over multiple years.

Based on the firm’s research note, the initial production ramps for the custom chips will likely begin in the second half of 2026. In this regard, it has conservatively raised its Broadcom AI revenue estimates, which are $40.4 billion for fiscal 2026, $64.5 billion for fiscal 2027, and $78 billion for fiscal 2028.

Mizuho anticipates additional tailwinds from Broadcom’s networking business with SUE/Tomahawk products.

Broadcom is a technology company uniquely positioned in the AI revolution owing to its custom chip offerings and networking assets.

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