Broadcom Stocks Plummet $87 Billion Amid Google-Marvell AI-Chip Partnership

Broadcom's stock price plummeted 4.61% on August 19 after Google expanded its custom-chip partnership with Marvell, wiping out approximately $87 billion from Broadcom's market capitalization.

The decline was disproportionate to the gain experienced by Marvell, which rose 9.85% and added around $17 billion to its market value.

This significant shift in market capitalization has left investors wondering about the implications of this deal on Broadcom's revenue and competitiveness in the AI-chip market.

Morningstar analyst William Kerwin described the agreement as a 'big win for Marvell,' stating that it is a 'growing pie' rather than a threat to Broadcom's position.