Broadcom Stocks Plunge on Google-Marvell Deal, But History Says Don't Panic

Broadcom's stock price fell by about 5% on August 19 after Marvell disclosed an expanded custom chip agreement with Google.

This news was seen as a threat to Broadcom's business, given that Google is one of its most important customers in the custom artificial intelligence (AI) chip market.

However, this is not the first time Broadcom has faced such a situation. In January 2023, Bloomberg reported that Apple planned to drop a key Broadcom chip by 2025, and while the displacement eventually happened, it did not lead to a loss of revenue for Broadcom.

In fact, Broadcom's revenue nearly doubled from $35.8 billion in fiscal 2023 to $63.9 billion in fiscal 2025, driven by strong demand for its AI custom chips.