:max_bytes(150000):strip_icc()/GettyImages-2240044449-a11f36c7a9524a268c12a8029bc2daea.jpg "It’s Broadcom’s Turn to Get a Stock Bump From Some OpenAI News")
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Key Takeaways
- News involving OpenAI has a tendency to move the shares of companies involved.
- Today’s example is Broadcom, which saw its stock jump on news of a deal with the ChatGPT maker.
OpenAI isn’t publicly traded. But when it acts, stocks often move.
On Monday, it was Broadcom’s (AVGO) turn. Shares of the chipmaker were recently up nearly 10%, approaching 2025 highs, following an announcement that the ChatGPT maker would team with the chipmaker to co-develop AI systems for delivery from 2026 to 2029.
Today’s climb in Broadcom shares is another example of the sustained popularity of the news-driven AI trade, which continues amid concerns about whether there’s a bubble in the sector. It also highlights the power of OpenAI, considered the world’s most valuable startup at about half a trillion dollars.
Why This Matters to Investors
One way for a stock to get a lift these days: land a mention in a press release or news report involving OpenAI, the company known for ChatGPT. Shares of Broadcom jumped Monday on just such an announcement, the latest to involve a major tech company.
The deal is “a pivotal moment in the pursuit of artificial general intelligence,” Broadcom CEO Hock Tan said in a statement. OpenAI chief Sam Altman called it “a critical step in building the infrastructure needed to unlock AI’s potential.”
The Broadcom news follows a raft of other OpenAI announcements in recent weeks. News about a partnership with AMD (AMD) powered that chip maker’s shares higher in early October. And Nvidia’s (NVDA) stock rose last month after it announced plans to invest as much as $100 billion in OpenAI. (September reports also highlighted a multiyear Oracle (ORCL)-OpenAI deal worth hundreds of billions of dollars.)
And when OpenAI had a “DevDay” event earlier this month, shares of a range of companies that were mentioned—including Figma (FIG) and Expedia (EXPE)—also got lifts.
As for Broadcom specifically, its shares recently changed hands at about $356, roughly 9% off the Visible Alpha mean of Wall Street analysts near $389. The stock has gained 54% since the start of 2025.
