Broadcom (NASDAQ: AVGO) and Bytedance are teaming up to develop advanced 5-nanometer AI chips. Bytedance has previously purchased 5-nanometer chips from Broadcom. Reports suggest that Taiwan Semiconductors (NYSE: SST) will manufacture the chips for the companies, and that they will not violate current chip export restrictions. The development of the chips is progressing well, but it is unlikely that Taiwan Semiconductor will start production this year.
This news indicates that the AI chip market remains strong, with significant growth expected in 2024. This positive outlook could benefit AVGO and TSM stock once chip production begins. As of Monday afternoon, AVGO shares are down 2.4% and TSM shares are down 3.6%.
In addition to this partnership, the stock market is buzzing with updates on Chinese electric vehicle (EV) stocks, developments at NVIDIA (NASDAQ: NVDA), and other news. Investors should stay informed with the latest stock market updates.
The article was published by InvestorPlace Media and the author, William White, does not hold any positions in the securities mentioned. The opinions expressed are those of the author and subject to InvestorPlace.com publication guidelines.
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https://investorplace.com/2024/06/ai-stocks-alert-broadcom-bytedance-partner-up-on-ai-chip-deal/
