Why Broadcom Stock Jumped 12% in October

Shares of (NASDAQ: AVGO) exploded higher last month after the company signed a mega-deal with artificial intelligence (AI) start-up OpenAI. OpenAI has been aggressively securing AI computing capacity in recent months as the company plans for exponential growth over the next few years. Broadcom stock gained 12% in October, according to data provided by S&P Global Market Intelligence.

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Broadcom and OpenAI announced on Oct. 13 that the two companies would collaborate on custom AI accelerators. OpenAI will design the chips and systems, the latter of which will include Ethernet and other connectivity solutions from Broadcom. Broadcom will also play a role in the development and deployment of the custom AI chips and systems.

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Source Fool.com