AVGO, CLS Stocks Are Gaining Today — What’s Behind OpenAI And Broadcom’s New AI Chip?

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Broadcom and OpenAI launched Jalapeno, the ChatGPT-maker’s first custom “intelligence processor,” kicking off a multi-generation AI hardware roadmap.

  • Broadcom said the partnership with OpenAI is aimed at building the physical infrastructure needed for the next decade of AI.
  • Celestica contributed boards, racks and systems, highlighting the broader ecosystem behind the chip program.
  • Broadcom plans to deploy the platform in gigawatt-scale AI data centers with Microsoft and other partners beginning in 2026.

Shares of Broadcom Inc. (AVGO) and Celestica Inc. (CLS) gained on Wednesday after Broadcom and OpenAI unveiled Jalapeno, the ChatGPT maker’s first custom AI chip. Celestica partnered on the boards, racks and systems supporting the new processor.

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At the time of writing on Wednesday afternoon, the AVGO stock was up about 1.6%, while CLS stock climbed more than 5%.

OpenAI’s First ‘Intelligence Processor’ Targets AI Inference

The chip, called Jalapeno, is OpenAI’s first “intelligence processor” and the first accelerator in a multi-generation compute platform being developed with Broadcom. According to the companies, the processor was built to support future AI inference workloads and make advanced AI faster and more reliable.

OpenAI said the chip uses the company’s understanding of large language models to optimize inference workloads, while Broadcom provided the silicon implementation and networking technologies needed to bring the platform to large-scale production.

Early Tests Show Higher Performance Per Watt

Though OpenAI is still evaluating final performance, the companies said early tests indicate Jalapeno delivers better performance per watt than current state-of-the-art AI accelerators. A detailed technical report is expected in the coming months.

According to the companies, the system is built to improve efficiency and get more performance out of available computing resources. The platform also incorporates Broadcom’s Tomahawk networking technology.

AVGO Sees Multi-Generation Roadmap With Microsoft

Broadcom CEO Hock Tan said the collaboration with OpenAI reflects a long-term effort to build “the physical infrastructure required for the next decade of AI.” He added that the initiative marks the beginning of a “multi-generation roadmap,” with jointly developed silicon aimed at supporting gigawatt-scale data center deployments with Microsoft (MSFT) and other partners starting in 2026.

AVGO, CLS Shares: What Retail Traders Feel

On Stocktwits, retail sentiment for AVGO was ‘bearish,’ unchanged in the past one week. Over the past 30 days, message volume around the stock has surged 1293%, while its retail watcher base rose 6.8% during the same period.

For CLS, the retail sentiment was ‘neutral,’ while message volume was ‘high’ at the time of writing.

While AVGO stock has gained around 10% year-to-date, CLS stock has risen 24% in the same period.

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