(NASDAQ: AVGO) stock is climbing Thursday following new contract news. The company's share price was up 1.9% as of 11 a.m. ET, according to data from S&P Global Market Intelligence. The stock had been up as much as 4% earlier in the daily session, but it pulled back in subsequent trading in conjunction with moves for the broader market.

According to a report published by Benzinga today, Broadcom has won new contracts to provide application specific integrated circuits (ASICs) for artificial intelligence (AI). The report cites coverage from J.P. Morgan analyst Harlan Sur and states that the semiconductor company has secured major contracts to provide chips to OpenAI -- the company behind ChatGPT.

According to Sur, Broadcom has been selected by OpenAI to deliver first-generation and second-generation ASIC AI chips. The news comes on the heels of reports and announcements that the semiconductor company is also providing ASICs designed for artificial intelligence to Alphabet, Meta Platforms, and ByteDance -- the company behind the popular social-media app TikTok. Sur notes that Broadcom has also secured a fifth, as of yet unnamed, customer for ASIC AI chips.

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Source Fool.com