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Broadcom (NASDAQ:AVGO | AVGO Price Prediction) shares are down 5% to $359.66 in early Wednesday trading after Marvell Technology (NASDAQ:MRVL) landed a deal to help develop custom AI chips for Alphabet‘s (NASDAQ:GOOGL) Google. The news directly pressures Broadcom’s status as Google’s incumbent custom silicon partner.
The move caps a rough stretch for Broadcom stock, which closed Tuesday at $380. Even after a blockbuster year for AI infrastructure names, Broadcom shares have gained 10% year to date through Tuesday’s close, a striking lag behind chip peers.
That divergence, and not the intraday drop alone, is the sharpest fact in Wednesday’s action. Broadcom sits at the center of the AI infrastructure buildout, yet its stock has not participated in the peer rally.
Marvell Lands a Google Chip Win
Reuters reported Wednesday that Marvell issued Google a warrant to buy a stake worth about $12.18 billion, tied…
