Broadcom AI Chip Launch Sparks Stock Target Boosts

Broadcom unveiled a new AI‑optimized processor called “Jalapeño,” designed for large‑language‑model inference and developed with OpenAI. The company says the chip offers substantially better per‑watt performance than current state‑of‑the‑art solutions, and early testing suggests it could lower power consumption for AI workloads.

Broadcom’s shares are trading around $372 after a recent pull‑back from a near‑$500 high. Revenue for the latest quarter rose 48% to $22.2 billion, and net margin reached 38.9%. Analysts have responded positively: Jefferies kept a “Buy” rating with a 12‑month price target of $550, while JPMorgan, Evercore, DBS Bank and others lifted their targets into the $500‑$580 range. The consensus 12‑month target from TipRanks is $517.

Institutional holdings shifted modestly, with OLD Second National Bank of Aurora trimming its Broadcom position to about 3.4% of its portfolio. Overall, about 76% of Broadcom stock is owned by institutions.