OpenAI’s development of a new proprietary AI chip is expected to drive significant networking and ASIC demand for Broadcom.

Broadcom Inc. (AVGO) may be among the lesser-known beneficiaries of OpenAI’s push to develop proprietary artificial intelligence chips. According to BNP Paribas, Broadcom and Celestica stand to gain significantly from OpenAI’s Jalapeno inference chip, Seeking Alpha reported. The bank identified the chip as one of the primary takeaways from the recent Hot Chips conference.

The emergence of Jalapeno underscores a broader industry shift: major AI developers are increasingly designing or funding specialized accelerators tailored to specific workloads. Alongside Google’s TPUs, Meta’s MTIA, and Microsoft’s Maia, OpenAI’s entry into custom silicon expands the competitive landscape beyond Nvidia.

Broadcom already maintains substantial exposure to both custom silicon and networking—two segments growing increasingly critical as AI infrastructure becomes more specialized. BNP Paribas also highlighted Meta’s adoption of Broadcom’s Tomahawk Ultra switches for scale-up networking as a key example of this trend.

The rise of agentic AI is accelerating innovation across CPUs, memory, and networking architectures, as workloads grow more complex and inference tasks become increasingly memory-intensive, BNP noted.

For investors, the implication is clear: the AI investment thesis is shifting away from reliance on a single dominant GPU vendor toward a broader appreciation of the entire underlying infrastructure stack.