OpenAI $350B Chip Deal, Meta Stock Split Potential

The artificial intelligence sector continues to see significant developments and market activity, despite broader economic concerns. Broadcom is reportedly in a massive $350 billion deal to supply custom AI chips to OpenAI, the creator of ChatGPT, a move that could significantly challenge Nvidia's current dominance in the AI chip market. This partnership, expected to deliver systems from 2026 to 2029, is seen as a critical step for AI infrastructure, with Broadcom's stock surging on the news. Meanwhile, Varonis Systems is bolstering its AI security offerings, integrating with OpenAI's ChatGPT Enterprise Compliance API and acquiring AI-driven security firm SlashNext, earning it a Buy rating and price target increase from UBS. In the realm of autonomous delivery, Serve Robotics, which counts Uber as an early investor, is expanding its fleet with a significant order for 2,000 robots by the end of 2025, also securing a deal with DoorDash. The AI market's growth is also evident in the construction sector, projected to reach $7.8 billion by 2033 in the US, with companies like NVIDIA Corporation and Autodesk involved. However, not all AI-related stocks are experiencing a boom; investors are advised to be cautious of companies like Snowflake, Datadog, and Synopsys due to high valuations and decelerating growth. Amidst these developments, the broader stock market experienced a pullback on October 10th, influenced by a government shutdown and trade tensions with China, though AI-driven stocks like TSMC and Broadcom have reached new highs. Separately, Bloom Energy's stock jumped over 20% on a $5 billion deal with Brookfield to deploy its fuel cell technology in AI factories. Potential stock splits are also being considered for high-flying AI stocks such as ASML Holding and Meta Platforms, reflecting their strong growth.

Key Takeaways

• Broadcom is reportedly in a $350 billion deal to supply custom AI chips to OpenAI, potentially impacting Nvidia's market leadership.
• OpenAI is integrating Varonis's enhanced AI security features, including its ChatGPT Enterprise Compliance API.
• Serve Robotics, with early investment from Nvidia and Uber, has a significant order for 2,000 robots by the end of 2025 and a deal with DoorDash.
• The US AI in Construction Market is projected to reach $7.8 billion by 2033, with NVIDIA Corporation and Autodesk as key players.
• Investors are cautioned against high-valuation AI stocks like Snowflake, Datadog, and Synopsys due to slowing growth.
• Broadcom reported record Q3 revenue of $15.95 billion, with AI semiconductor sales up 63% to $5.2 billion.
• Bloom Energy secured a $5 billion deal with Brookfield for its fuel cell technology in AI factories.
• Meta Platforms and ASML Holding are identified as potential candidates for stock splits due to their high share prices and growth.
• Broadcom's stock has rallied nearly 90% this year, reaching a market cap of approximately $1.6 trillion.
• Market volatility increased on October 10th due to a government shutdown and trade tensions, impacting overall stock performance.

Broadcom's AI Deal Fuels 90% Stock Rally

Broadcom's stock has surged nearly 90% this year, reaching a market cap of around $1.6 trillion. The company reported record Q3 revenue of $15.95 billion, with AI semiconductor sales jumping 63% to $5.2 billion. A major $10 billion deal for custom AI chips, reportedly with OpenAI, is expected to significantly boost future AI-related sales. Analysts are largely positive, with a consensus Buy rating and a target price around $377. Despite market volatility from trade tensions, Broadcom's AI-driven growth story remains strong.

Stocks Fall as AI Hype Meets Shutdown and Trade Fears

US stock markets experienced a significant pullback on October 10th, with the Dow, S&P 500, and Nasdaq all dropping sharply after reaching record highs. A government shutdown and renewed trade tensions with China contributed to investor uncertainty, leading to a spike in the VIX fear index. Despite these concerns, the AI-driven rally has propelled tech giants like TSMC and Broadcom to new highs, though valuations are becoming a point of caution. Gold and other safe-haven assets saw gains amid the market jitters. Analysts suggest the market's near-term direction depends heavily on escalating trade issues.

Broadcom Stock Soars on OpenAI AI Chip Deal

Broadcom's stock surged over 12% pre-market following reports of a $10 billion AI chip deal with OpenAI. This collaboration aims to co-design AI processors for delivery starting in 2026. The news comes after Broadcom reported record Q3 revenue of $16 billion, with its AI semiconductor segment growing 63% year-over-year. Despite recent market volatility due to trade tensions, Broadcom's strong financial performance and significant order backlog support its optimistic outlook. Analysts maintain a bullish stance, with price targets suggesting further upside.

Varonis Enhances AI Security, Earns UBS Upgrade

Varonis Systems has strengthened its AI security offerings through strategic acquisitions and integrations. The company recently acquired SlashNext, an AI-driven email security firm, and integrated with OpenAI's ChatGPT Enterprise Compliance API. These moves expand Varonis's capabilities to protect data across email, collaboration tools, and generative AI environments. UBS reiterated its Buy rating and raised its price target to $70, citing strong customer demand and Varonis's successful transition to a recurring revenue model.

Varonis Boosts AI Security and Gets UBS Upgrade

Varonis Systems is enhancing its data security platform with AI integrations, leading to a Buy rating and a price target increase to $70 from UBS. The company's focus on AI security addresses evolving cyber threats and strengthens its market position. Varonis's strategic moves, including acquisitions and integrations, have expanded its role in enterprise data security. This commitment to AI innovation is driving its market performance and is expected to fuel further growth in the sector.

AI Stocks ASML Meta AppLovin Could Split Shares

Three artificial intelligence stocks, ASML Holding, Meta Platforms, and AppLovin, are potential candidates for stock splits due to their high share prices and strong growth. ASML, a semiconductor equipment provider, has split its stock five times before and may consider it again. Meta Platforms, despite never splitting its stock, has seen its share price soar above $700, making a split a possibility if momentum continues. AppLovin, a mobile advertising and marketing software company, is also experiencing rapid revenue and profit growth, suggesting a future stock split could be warranted.

Nvidia Uber Back Serve Robotics AI Delivery

Nvidia and Uber were early investors in Serve Robotics, a company focused on autonomous sidewalk delivery robots. Uber, which inherited Serve through its Postmates acquisition, still holds a 12% stake and has placed a significant order for 2,000 robots by the end of 2025. Nvidia invested $12 million in 2022 but sold its stake last year for a profit. Despite generating only $1.8 million in revenue last year, Serve Robotics is expanding rapidly with new deals, including one with Uber rival DoorDash.

Bloom Energy Stock Pops on AI Factory Deal

Bloom Energy's stock surged over 20% following news of a $5 billion deal with Brookfield to deploy its fuel cell technology in AI factories. This partnership includes opportunities in Europe, with a specific site to be announced soon. Bloom Energy's stock has seen substantial growth throughout 2025, rising from around $22 to over $100. This development highlights continued investor interest in the AI trade, even amidst broader market concerns about potential bubbles and economic headwinds.

Broadcom Stock Jumps on OpenAI AI System Deal

Broadcom's stock rose nearly 10% on news of a partnership with OpenAI to co-develop AI systems. This deal, set to deliver systems from 2026 to 2029, highlights the influence of OpenAI announcements on stock movements. Broadcom CEO Hock Tan called it a 'pivotal moment,' while OpenAI's Sam Altman stated it's a 'critical step' for AI infrastructure. This follows recent positive news for companies partnering with OpenAI, including AMD and Oracle, underscoring the ongoing strength of the AI trade despite valuation concerns.

Broadcom Reportedly Lands $350 Billion OpenAI AI Chip Deal

Broadcom Inc. has reportedly secured a massive $350 billion deal to supply custom AI chips to OpenAI, the company behind ChatGPT. This significant agreement could challenge Nvidia's dominance in the AI chip market and boost Broadcom's position. While neither company has officially confirmed the deal, the report has generated excitement about the growing demand for specialized AI hardware. This partnership would allow OpenAI to develop its own chips, potentially enhancing efficiency and performance for its AI endeavors.

Avoid These AI Stocks: Snowflake Datadog Synopsys

Investors should exercise discipline and avoid stocks with excessively high valuations, even within the promising AI sector. Companies like Synopsys, Snowflake, and Datadog are trading at premium multiples that leave little room for error. Synopsys faces slowing growth and competitive pressure, while Snowflake's revenue growth has decelerated significantly. Datadog is also experiencing slower growth as customers consolidate IT spending. These stocks, despite their potential, carry high risk due to their lofty valuations and signs of fundamental weakness.

US AI in Construction Market to Reach $7.8 Billion by 2033

The United States Artificial Intelligence (AI) in Construction Market is projected to reach $7.8 billion by 2033, growing at a compound annual growth rate of 33.7%. AI is enhancing construction through predictive analytics, automation, and real-time monitoring, optimizing planning, safety, and efficiency. Recent trends include AI pilots for scheduling and safety hazard detection in the US, and Japan's government establishing an AI Strategy Headquarters. Key players in this market include NVIDIA Corporation, Autodesk, Inc., SAP SE, and Building System Planning, Inc.

Sources

• Broadcom’s $10B AI Deal Sparks 90% Rally – What’s Next for AVGO Stock?
• Stocks Retreat as AI Hype Meets Shutdown and Trade Fears
• Broadcom (AVGO) Stock Surges on AI Chip News – What Investors Must Know
• Varonis Builds Out AI Security Portfolio, Draws UBS Upgrade
• Varonis Builds Out AI Security Portfolio, Draws UBS Upgrade
• Stock Splits Ahead? 3 Artificial Intelligence (AI) Stocks to Keep on Your Radar @themotleyfool #stocks $META $ASML $APP
• Why Are Nvidia and Uber Backing This Tiny $900 Million Artificial Intelligence (AI) Company?
• There's Still Life in the AI Trade. Today's Pop in Bloom Energy Stock Is the Latest Example.
• It's Broadcom's Turn to Get a Stock Bump From Some OpenAI News
• Broadcom Lands $350 Billion AI Chip Deal with OpenAI--Shares Explode
• 3 'Promising' AI Stocks To Avoid 3 'Promising' AI Stocks To Avoid - Snowflake (NYSE:SNOW), Datadog (NASDAQ:DDOG)
• United States Artificial Intelligence (AI) in Construction Market: 33.7% CAGR to USD 7.8 Billion by 2033 | Leading Companies - Building System Planning, Inc., SAP SE, Autodesk, Inc., NVIDIA Corporation