Broadcom partners with NTT to develop optical semiconductor devices in Japan to reduce data center power usage by 50% by 2026. The collaboration focuses on creating optical-based semiconductor packages to improve processing speed and capacity while cutting power consumption. NTT plans to market the technology to U.S. firms for generative AI systems.

Broadcom’s stock has surged 45% year-to-date, outperforming the Nasdaq 100, as demand for custom chips and VMware infrastructure software grows amid the AI boom. The company is transitioning from a smartphone component supplier to a major player in AI chips and networking to meet the expanding needs of technology firms.

Investor interest in Broadcom rises as the company partners with OpenAI to develop custom AI processors to address GPU shortages impacting ChatGPT deployments. Broadcom discloses a $10 billion order from OpenAI, expecting immediate and substantial demand. The company raises its fiscal 2026 AI revenue growth outlook to 50–60%, projecting $6.2 billion in AI chip sales next quarter.

AVGO stock was trading slightly lower premarket at $335.43.

Read more at Yahoo Finance: Broadcom’s Big AI Move In Japan Could Slash Data Center Power Use By Half