05:32 AM EDT, 09/05/2025 (MT Newswires) -- (Updates with the stock move in the headline and the first paragraph, and media speculation of OpenAI partnership in the last two paras.)

Broadcom ( AVGO ) shares were up 8.8% in recent premarket activity Friday after the chipmaker reported overnight fiscal Q3 earnings and revenue above market expectations, and amid speculation of a partnership with OpenAI.

Broadcom ( AVGO ) reported fiscal Q3 non-GAAP net income late Thursday of $1.69 per diluted share, up from $1.24 a year earlier.

Analysts polled by FactSet expected $1.66.

Revenue for the quarter ended August 3 was $15.95 billion, up from $13.07 billion a year earlier.

Analysts expected $15.83 billion.

For fiscal Q4, the company expects revenue of $17.4 billion. Analysts are looking for $17.01 billion.

Broadcom ( AVGO ) declared a quarterly dividend of $0.59 per share, payable Sept. 30 to shareholders on record as of Sept. 22.

Microsoft ( MSFT )-backed (MSFT) OpenAI plans to manufacture its first artificial intelligence chip in 2026 in collaboration with Broadcom ( AVGO ), the Financial Times reported Thursday, citing people familiar with the matter.

The parent of generative AI chatbot ChatGPT intends to use the chip internally in its own infrastructure, rather than targeting external customers, the publication reported, citing one person close to the project.