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Marvell’s Google custom chip deal weighs on Broadcom stock ahead of guidance

Broadcom shares are down more than 10% from a recent high near $428, with investors focused on how Marvell’s Google pact could affect Broadcom’s AI semiconductor share.

Reported · Written up by our desk · Previews

Broadcom’s stock has fallen more than 10% from a recent high of about $428, as investors weigh concerns that custom AI chip demand could diversify beyond the company’s long time partner, Google. The pressure has intensified after Marvell signed a deal with Alphabet’s Google to develop custom semiconductor products, creating a new competitor in Google’s custom silicon pipeline. MarketBeat Ratings noted that some observers view the move as Broadcom losing share in Google’s Tensor Processing Unit, or TPU, development ecosystem, though Marvell’s filing is described as more ambiguous, referencing custom silicon programs that attach to the TPU ecosystem rather than directly developing TPUs. The plans reportedly include AI inference accelerators that align with how Google describes chips such as TPU 8i. Investors are also looking ahead to Broadcom’s upcoming AI semiconductor guidance report as a chance to rebuild confidence. MarketBeat Ratings emphasized that Broadcom still has a TPU and networking deal with Google running through 2031, which suggests it is likely to remain a key partner even if new competition emerges.

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