Broadcom Stock Slumps on Marvell Google Deal
Broadcom's stock price fell by 5% to $359.66 in early Wednesday trading after Marvell Technology landed a deal to develop custom AI chips for Alphabet's Google, threatening Broadcom's status as Google's incumbent custom silicon partner through 2031.
The news is the latest development in a rough stretch for Broadcom, which has seen its stock price lag behind those of its peers despite strong revenue growth. Broadcom's AI semiconductor revenue reached $10.8 billion in Q2 FY2026, up 143% year over year.
Marvell issued Google a warrant to buy a stake worth about $12.18 billion tied to the deal, which will see Marvell develop AI inference accelerators, storage, networking and memory interface controllers, and near-memory computing technologies for Google.
The move has raised concerns among traders about Broadcom's financing vehicles and reported VMware security issues, with some speculating that the pullback may be an overreaction to market noise rather than a structural re-rating of the stock.