By ET
Publication Date: 2025-12-08 12:31:00
With the bush abuzz with talk of a major AI chip deal coming Broadcom’s way, the company finds itself in investors’ crosshairs. According to a report by The Information, Microsoft is in talks to shift its custom development from Marvell Technology to the Palo Alto, California-based chipmaker.
Should the deal materialise, it would mark a big win for Broadcom’s ASIC (application-specific integrated circuit) division, strengthening its standing in the AI-hardware market.
Getting Microsoft on board as a customer would reduce the firm’s reliance on a single big client. Currently, it develops tensor processing units (TPUs) for Google. A second “hyperscaler” anchored to Broadcom could meaningfully diversify its order book.
Earnings on the horizon
Broadcom will report its Q4 fiscal 2025 results on December 11. The street projected a quarterly revenue of around $17.5 billion, supported by robust demand in AI networking and custom-chip segments. Its earnings per share (EPS)…