Part 2/11:
The sector's moves are closely tied to significant announcements. OpenAI and Broadcom’s recent deal to develop custom chips sent Broadcom’s stock sharply higher temporarily, though it later retreated. Similarly, Oracle revealed plans to deploy 50,000 graphics processors from AMD starting in the second half of 2026, signaling long-term commitments to AI infrastructure expansion.
These developments underscore a broader trend: the increasing importance of custom chip development to meet AI demands. Companies are investing heavily—sometimes billions—in new hardware, reflecting the seismic shift AI represents for semiconductors.