A sign is posted in front of a Broadcom office in San Jose, California, on Dec. 12, 2024. Justin Sullivan | Getty Images
This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox. Here are five key things investors need to know to start the trading day:
1. Broadcom's boon
OpenAI made its latest artificial intelligence partnership official yesterday, announcing a custom chip deal with Broadcom . Shares of the chipmaker closed Monday's session nearly 10% higher following news of the partnership, though the stock pulled back by 3% in premarket trading this morning. Here's what to know: The companies — which have been working together for 18 months — are building and deploying 10 gigawatts of custom AI accelerators as part of the deal.
While the financial terms of the agreement weren't disclosed, analysts were quick to suggest that OpenAI is the unnamed $10 billion customer that Broadcom touted in September. But Charlie Kawwas, president of Broadcom's semiconductor solutions group, told CNBC that the mystery customer is a different company.
With the deal, CNBC's MacKenzie Sigalos reports, OpenAI is venturing into the chipmaking business and increasingly positioning itself as a competitor to hyperscalers.
Other chip stocks including Nvidia Taiwan Semiconductor On Semiconductor Micron Technology saw upside in yesterday's session.
saw upside in yesterday's session. Tech stocks led the market's rebound to start the week, with the S&P 500 clawing back more than half of what it lost in Friday's sell-off.
clawing back more than half of what it lost in Friday's sell-off. Oaktree Capital Management co-founder Howard Marks said he isn't describing the AI trade as a "bubble" just yet. "The valuations are ... high but not crazy," he told CNBC.
2. Bank teller
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