By David Moadel
Publication Date: 2026-10-16 18:02:00
Broadcom’s own CEO just flagged a threat that has nothing to do with chip supply, and it is hitting custom AI chip stocks far harder than the broader semiconductor market.
A blunt warning about AI funding from one of the chip industry’s most prominent executives is hitting custom AI chip stocks harder than the wider semiconductor group. Broadcom (NASDAQ:AVGO | AVGO Price Prediction) stock has dropped 4%, recently trading at $332.10. Meanwhile, Marvell Technology (NASDAQ:MRVL) stock is also down 4% and trades at $231.12.
Shares of Broadcom and Marvell are trailing the funds that track their corners of the market. The iShares Semiconductor ETF (NASDAQ:SOXX) is down 2.7%, a softer decline than either Broadcom stock or Marvell stock. Large-cap tech is holding up better (though it’s still selling off), with the Invesco QQQ Trust (NASDAQ:QQQ) down 2.3%.
Hock Tan Flags Capital as AI’s Next Bottleneck
Broadcom CEO Hock Tan spoke at an event in Singapore. Earlier this week, he…