Broadcom shares fell 5% after Google, its key custom chip customer, announced a partnership with rival Marvell Technology in AI silicon. Marvell revealed an expansive deal with Google spanning custom silicon programs attached to the TPU ecosystem, including memory and storage components. As part of the agreement, Marvell issued stock warrants to Google valued at roughly $12.2 billion. This partnership validates investor concerns that Google will increasingly diversify its custom AI chip suppliers, a known overhang for Broadcom. Marvell shares jumped about 7% on the news.
Source: Read the original article
