Broadcom Inc. (NASDAQ:AVGO), alongside OpenAI, unveiled Jalapeño, OpenAI’s first custom Intelligence Processor designed specifically for large language model (LLM) inference on Wednesday.
• What’s ahead for AVGO stock?
Custom Chip Development
The Silicon Valley tech giants announced the AI accelerator on Wednesday. Co-developed from initial design to manufacturing tape-out in nine months, the processor utilizes OpenAI models to optimize its design cycle. Engineering samples are currently running machine learning workloads, including GPT-5.3-Codex-Spark. Celestica Inc. (NYSE:CLS) assisted with board and rack system integration.
Multi-Generation Infrastructure Roadmap
The hardware marks the first step in a multi-generation compute platform planned for initial deployment by the end of 2026. “By co-developing our industry-leading silicon directly with OpenAI, we are enabling the deployment of gigawatt-scale data centers with Microsoft and other partners beginning in 2026,” Broadcom President and CEO Hock Tan stated.
Early testing indicates the chip delivers performance per watt substantially better than current state-of-the-art accelerators. “Based on early testing, Jalapeño will efficiently execute our most important workloads close to the hardware’s theoretical limits,” said Richard Ho, leader of OpenAI’s hardware program.
AVGO Technical Levels To Watch This Week
The bigger technical story is that Broadcom is still in a pullback from its June swing high, trading 6.8% below its 20-day SMA and 7.6% below its 50-day SMA, even though it remains 3% above the 100-day and 5.6% above the 200-day. That mix often reads as “short-term cooling inside a longer-term uptrend,” especially with the golden cross that formed in April still intact (50-day above 200-day).
- Key Resistance: $437.50 — Nearby ceiling that lines up with a prior rebound-stall zone and sits above the cluster of short-term moving averages Broadcom needs to reclaim
- Key Support: $370.50 — Nearby floor near the 100-day SMA area where buyers have previously shown up, making it a key line in the sand for the current pullback
AVGO Stock Price Activity: Broadcom shares were up 0.40% at $381.57 at the time of publication on Wednesday, according to Benzinga Pro data.
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