Sam Altman Reaffirms OpenAI’s Long-Term Commitment to NVIDIA Amid Chip Report 
SoftBank and Intel Partner to Develop Next-Generation Memory Chips for AI Data Centers 
Dollar Steady as Fed Nomination and Japanese Election Shape Currency Markets 
U.S. Stock Futures Rise as Investors Eye Big Tech Earnings and AI Momentum 
China Services PMI Hits Three-Month High as New Orders and Hiring Improve 
India Services Sector Rebounds in January as New Business Gains Momentum: HSBC PMI Shows Growth 
Nvidia’s $100 Billion OpenAI Investment Faces Internal Doubts, Report Says 
SpaceX Updates Starlink Privacy Policy to Allow AI Training as xAI Merger Talks and IPO Loom 
Apple Faces Margin Pressure as Memory Chip Prices Surge Amid AI Boom 
Sandisk Stock Soars After Blowout Earnings and AI-Driven Outlook 
Elon Musk’s SpaceX Explores Merger Options With Tesla or xAI, Reports Say 
Google Cloud and Liberty Global Forge Strategic AI Partnership to Transform European Telecom Services 
Apple Earnings Beat Expectations as iPhone Sales Surge to Four-Year High 
Oil Prices Steady as Markets Weigh U.S.-Iran Talks, Dollar Strength Caps Gains 
Australian Scandium Project Backed by Richard Friedland Poised to Support U.S. Critical Minerals Stockpile 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
A top-performing AI chip company has emerged as Jefferies' standout stock for 2025, fueled by groundbreaking advancements in custom chip designs. Analysts predict the firm could achieve record-breaking revenues and market expansion, challenging established leaders in the industry.
Jefferies Names Top Pick for AI Chip Market in 2025
Based on the company's strong position in the rapidly expanding artificial intelligence chip market, which is driven by demand for custom-designed chips, also known as ASICs, Jefferies has selected Broadcom Inc. as its top pick for the year 2025, Investing.com reports.
Jefferies increased its price objective for the stock from $225 to $300, predicating the increase on the expectation of robust earnings growth.
The sophisticated chips manufactured by Broadcom are anticipated to compete with those manufactured by Nvidia Corporation in terms of computation density as new technologies like 3.5D packaging and silicon photonics gain popularity.
Broadcom’s Role in Artificial General Intelligence
According to the brokerage, Broadcom has played a significant role in the development of powerful artificial intelligence clusters, with large clients seeking to install one million computing units. Among the most important areas of innovation, these clusters provide support for artificial general intelligence.
It was anticipated by Jefferies that Broadcom's sales of AI chips might generate more than $60 billion in revenue by the year 2027, which would drive earnings per share to $12 or more. In the event that Broadcom is able to seize even a small portion of the high-end market, it sees enormous potential for profitability.
Broadcom’s AI Chip Division Gains Momentum
Particularly in training-focused chips, which command greater costs as designs become more complicated, Broadcom's artificial intelligence division has gained steam, particularly in recent years. It is anticipated that the company's chips would become larger and contain more modern technology, which will result in an increase in the average selling price.
The outlook for Broadcom's networking and optical devices was similarly positive, according to Jefferies.
