markets

Claire Yubin Oh9/5/25

Broadcom rallies on report that OpenAI is the new key customer that’s boosting its 2026 revenue outlook “significantly”

Broadcom shares were as much as ~9% higher in early trading on Friday after the Financial Times reported that OpenAI is set to produce its first AI chips in partnership with Broadcom — seemingly confirming the ChatGPT trailblazer as the customer that Broadcom CEO Hock Tan had alluded to on yesterday’s earnings call.

After a modest Q2 earnings beat, shares of Broadcom were doing little of note in postmarket trading until Tan revealed the addition of a new big buyer that has recently added over $10 billion of orders for its AI business. He added that the outlook for next year’s AI revenues would “improve significantly” based on this hefty demand, which quickly sent shares up 3%. The semiconductor giant did not disclose the name of this customer, but people familiar with the matter contacted by the FT confirmed OpenAI as the new client.

Per the FT, production of the new, specialized chips will start next year, and they’ll be used by OpenAI internally, supporting its growing demand for the computing power to run its models and reducing the company’s reliance on the hotly sought-after inventory of Nvidia.

While the two companies’ initial collaboration has been hinted at before, specific details have previously been unclear.

Per the FT, production of the new, specialized chips will start next year, and they’ll be used by OpenAI internally, supporting its growing demand for the computing power to run its models and reducing the company’s reliance on the hotly sought-after inventory of Nvidia.

While the two companies’ initial collaboration has been hinted at before, specific details have previously been unclear.

More Markets

See all Markets

US gas prices exceed $3.50 per gallon for the first time since July 2024

Prediction markets no longer see $4 gas as likely at the end of March, however.

Man pumping gas at Gas Station, Florida

markets

Claire Yubin Oh2h

TSMC grew its sales 30% year-on-year in January and February

Taiwan Semiconductor ticked higher in premarket trading on Tuesday after the chipmaker reported a 30% jump in sales for the first two months of 2026, compared to the year before.

A key supplier for AI industry giants like Nvidia and Advanced Micro Devices, TSMC saw its combined January and February revenue grow to NT$718.9 billion ($22.6 billion), per its monthly revenue report, published early on Tuesday morning.

The company notched NT$317 billion in February alone, growing 22% from a year ago and decelerating from January's 37% year-on-year growth. For the coming full Q1, analyst estimates compiled by Bloomberg are anticipating growth of 33% — suggesting a strong March will be needed to meet that figure.

Charles Shum, a Bloomberg Intelligence analyst, notes that the modest weakness in the first two months is more likely down to softer performance in smartphones and PCs, rather than cooling AI-chip demand, as soaring memory prices put pressure on shipments.

Tasha Matsumoto

Stocks swing positive as Trump says the Iran war could be over soon

Stocks made a huge tech-led comeback while the price of crude oil slid.

Aberdeen Angus Bull

markets

What to look for in Oracle’s Q3 earnings

On Tuesday, Oracle will announce its third-quarter earnings, and all eyes are on the company’s massive AI data center build-out. Last month, the company told investors that it plans to raise $45 billion to $50 billion to fund its ambitious capex plans.

With so much new spending, the company is reportedly looking to make steep job cuts — thousands of positions across the company — and may be freezing hiring in its cloud division.

Shares of Oracle are down by more than 20% since the start of the year. The stock is down about 56% from its 52-week high of $345.72.

The company’s big bet on AI is causing some concerns among investors, and Oracle has recently seen a wave of lowered price targets from analysts:

Jefferies: to $320 from $400.
Scotiabank: to $215 from $220.
Deutsche Bank: to $300 from $375.
Baird: to $200 from $300.

On Friday, shares dropped sharply on reports that OpenAI had pulled out of a planned expansion of the Stargate data center in Abilene, Texas. But OpenAI has since clarified that the decision to back out of plans for the expansion was just the result of shifting capacity to other data center sites under construction.

The company will announce its earnings after market close on Tuesday.

FactSet’s survey of analysts shows they expect earnings per share of $1.70 and revenue of $16.9 billion for Oracle’s third quarter. Cloud revenue is expected to be $8.76 billion, and all eyes will be on Oracle’s capex, which is expected to be $14 billion.

Max Knoblauch16h

Joby, Archer, and Beta climb following their inclusion in the Trump administration’s air taxi pilot program

Shares of air taxi makers Joby Aviation, Archer Aviation, and Beta Technologies are climbing in Monday afternoon trading following the Department of Transportation’s announcement of their inclusion in the eVTOL Integration Pilot Program.

Archer and Joby, which announced their plans to participate in the program back in September, each climbed more than 4% on Monday, while Beta surged more than 12%. Boeing’s air taxi subsidiary, Wisk, was also named in the DOT’s announcement.

The DOT and FAA selected eight projects spanning 26 states to speed up the development of “advanced air mobility.” Operations will begin this summer. According to an Archer press release, the program could mark “a major step toward bringing electric air taxis to market in the United States.”

“These partnerships will help us better understand how to safely and efficiently integrate these aircraft into the National Airspace System,” FAA Deputy Administrator Chris Rocheleau said. “The program will provide valuable operational experience that will inform the standards needed to enable safe Advanced Air Mobility operations.”

Latest Stories

Sherwood Media, LLC produces fresh and unique perspectives on topical financial news and is a fully owned subsidiary of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, or Robinhood Money, LLC.

©2026 Sherwood Media, LLC