Missed Nvidia in 2009? This Rare Signal Is Flashing Again.In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia. Continue \u00bb<\/a><\/p>\n Uncertainty about the future of AI adoption has some investors sitting on the sidelines, but the evidence continues to mount that the company has a bright future.<\/p>\n Broadcom and OpenAI have joined forces to create an AI chip that the pair believes will be a game changer. The companies unveiled the custom-built processor, dubbed “Jalape\u00f1o,” on Wednesday, marking OpenAI’s first foray into physical silicon development.<\/p>\n ]]> Image source: The Motley Fool.<\/p>\n A spicy new AI processor<\/p>\n The new chip is the first step in OpenAI’s long-term strategy to design computer chips and accessories that will underpin its evolving AI models. In a joint news release, Broadcom and OpenAI noted that they went back to the drawing board to design Jalape\u00f1o, which was “built from the ground up” and optimized for the unique demands of large language models (LLMs)<\/a>.<\/p>\n Jalape\u00f1o was designed specifically to be more efficient when working with ChatGPT and Codex, OpenAI’s coding agent. It was also intended to work well with LLMs that the company develops in the future.<\/p>\n On an intriguing note, OpenAI revealed that the chip was designed with the help of its AI models. In an interview with CNBC, OpenAI president Greg Brockman said, “The degree to which our models have been able to accelerate [the chip development process] was very surprising to us.”<\/p>\n While the chip’s final performance testing isn’t yet complete, early results suggest that Jalape\u00f1o\u2019s performance per watt will be “substantially better” than current cutting-edge processors.<\/p>\n The breakthrough design focuses on reducing data movement across the chip and balancing the demands on compute, memory, and networking resources. In doing so, the processor achieves performance that is much closer to theoretical peak performance.<\/p>\n For example, one of the biggest drags on processing speed — or latency — is the need to move information around the chips. By minimizing data movement and reducing latency, OpenAI believes it will speed the next generation of AI inference — the tasks for which AI models are designed.<\/p>\n Brockman also said, “By designing more of the stack ourselves, we can serve more intelligence with greater efficiency and keep pushing advanced AI toward broader access.” In essence, making AI more widely available.<\/p>\n Broadcom CEO Hock Tan noted that this was the first step in a “multi-generation roadmap.” He went on to say that the collaboration represents a “fundamental commitment to scaling the physical infrastructure required for the next decade of AI.<\/p>\n Broadcom’s biggest customers are among the tech elite, including such high-profile names as Alphabet, Meta Platforms, TikTok parent ByteDance, AI start-up Anthropic, and — of course — OpenAI. The company continues to expand its relationships with existing customers, which bodes well for the future.<\/p>\n Earlier this year, Tan said, “We have line of sight to achieve AI revenue from chips, just chips, in excess of $100 billion in 2027.” For context, Broadcom’s total revenue was roughly $64 billion in 2025, and its AI semiconductor revenue was just $10.8 billion in Q2, helping to underscore the magnitude of the growth yet to come.<\/p>\n Yet for all that opportunity, the stock is selling for 19 times next year’s expected earnings. That’s an attractive price for an industry leader driven by strong secular tailwinds.<\/p>\n That’s why Broadcom is a buy<\/a>.<\/p>\n Should you buy stock in Broadcom right now?<\/p>\n Before you buy stock in Broadcom, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks<\/a> for investors to buy now\u2026 and Broadcom wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you\u2019d have $392,713!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,227,782!*<\/p>\n Now, it\u2019s worth noting Stock Advisor\u2019s total average return is 897% \u2014 a market-crushing outperformance compared to 208% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of June 24, 2026. <\/p>\n Danny Vena, CPA<\/a> has positions in Alphabet, Broadcom, and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Broadcom, and Meta Platforms. The Motley Fool has a disclosure policy<\/a>.<\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":"Key Points Broadcom and OpenAI have joined forces on a new custom AI chip. 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