Broadcom Shares Rise as Anthropic Set to Become Its Largest Custom Chip Customer

Meta Platforms launched Muse, an autonomous personal AI agent that shot to the top of the Apple App Store within a week, and the agentic AI shift is driving gains for Arm Holdings and Advanced Micro Devices. In March, Meta and Arm announced a large-scale partnership to co-develop Arm AGI CPU and multiple generations of specialized silicon for Meta's data centers, and Arm CEO Rene Haas said Arm already has $2 billion of customer demand for its new AGI CPU. SoftBank, which owns roughly 90% of Arm's shares outstanding, said it would raise Arm's loan facility to $25 billion from $20 billion, and Arm shares rose more than 10% in early trading. Meta partnered with AMD to optimize Muse Glimmer, an open-source model designed to run locally on computers, and demand for agentic AI has pushed prices for AMD server chips up about 40%. AMD CEO Lisa Su said the server CPU market could exceed $120 billion by the end of the decade, a 35% CAGR, and AMD shares broke out to all-time highs as the company crossed the $1 trillion market cap landmark for the first time.

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Intel Surges 255% as NVIDIA Takes $5 Billion Stake

Intel has staged a dramatic turnaround, with its stock climbing 255.25% over the past year to $108.60 from a low-twenties starting point, as NVIDIA validated the company's operational fix by taking a $5 billion equity stake in Q3 2025. The chipmaker reported Q2 revenue of $16.13 billion, up 25.4% year over year and beating consensus by 11.64%, while non-GAAP EPS came in at $0.42 versus a $0.22 estimate. Data Center and AI revenue hit $6.26 billion, up 59%, with Xeon 6 selected as host CPU for NVIDIA's DGX Rubin NVL8 systems, and CEO Lip-Bu Tan called it Intel's strongest revenue growth in more than fifteen years as Intel 18A entered high-volume manufacturing. Despite the gains, Intel Foundry still lost $2.1 billion last quarter and burns $2.1 billion to $2.5 billion per quarter, with external Foundry revenue at only $293 million. The stock now trades at roughly $574 billion market cap on a 57x forward P/E with trailing EPS still negative at -$2.09, and Wall Street's mean target of $116.37 sits barely above spot with a consensus Hold rating of 32 holds against 14 buys.

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Broadcom AI Revenue Surges 221% as 24/7 Wall St. Sets $426 Target

Broadcom's AI semiconductor revenue surged 221% year-over-year to $16.70 billion in fiscal Q3 2026, even as the stock trades at $357.61 and has gained just 3.71% year-to-date, prompting 24/7 Wall St. to issue a BUY rating with a $426.10 price target implying 19.15% upside. The September 2 report showed total revenue of $29.59 billion, up 85.5% year-over-year, with non-GAAP EPS of $3.32 marking the ninth straight beat, and management guided Q4 AI revenue to $21.7 billion, up 236%. CEO Hock Tan has targeted exceeding $100 billion in AI sales by 2027 and disclosed a Meta partnership for 3 gigawatts through 2028, an OpenAI commitment of 1.3 gigawatts in 2027 within a broader 10 gigawatts by 2029 agreement, and $6 billion in additional purchase orders from two unnamed customers. Broadcom's forward P/E of 19 sits below NVIDIA's 24, while Marvell Technology competes for the same hyperscaler ASIC sockets. Risks center on customer concentration among a limited number of hyperscale AI customers and expected gross margin compression toward 74% as AI silicon becomes a larger mix.

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