On Monday, Mizuho Securities adjusted its outlook for Broadcom Limited (NASDAQ:), raising its price target to $220 from the previous $190 while maintaining an Outperform rating. The upward revision reflects the potential revenue from Broadcom’s involvement with OpenAI’s custom AI chips. Analysts at Mizuho see a significant opportunity for Broadcom in the second half of 2025 through 2026, as it is expected to launch a custom AI chip in partnership with OpenAI, leveraging TSMC’s advanced 2/3nm process technology, with a second-generation chip on the horizon for 2026-2027.

According to Mizuho’s analysis, this partnership could unlock a more than $16 billion opportunity for Broadcom, assuming around a 10% market share in search queries and…