Broadcom shares rally as $10 billion chip deal shows AI strategy paying off


FILE PHOTO: A Broadcom logo appears in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo

(Reuters) -Broadcom shares jumped 15% on Friday after the chipmaker unveiled a blockbuster $10 billion AI chip order from a new customer, fueling optimism around its ability to benefit from the generative AI race.

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.

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