Broadcom (NASDAQ:AVGO) stock is sliding lower on Thursday as investors discuss the potential of Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google dropping the chip company.
According to recent reports, executives at Google are discussing the possibility of no longer using Broadcom chips for its artificial intelligence (AI) projects. Instead, the tech giant is considering making its own chips for AI use.
The latest news claims that Google wants to end the use of Broadcom for AI chips starting as early as 2027. Investors in AVGO stock will also note that reports claim Google is moving away from Broadcom in other uses, such as server and ethernet chips. These reports claim that it’s switching over to Marvell Technology (NASDAQ:MRVL) for these cases.
Google switching away from Broadcom would be a major blow to the company. Especially as it’s one of the chipmakers that has seen major growth alongside the AI boom. That could slow its growth and cause worries among investors in AVGO stock.
AVGO Stock Movement on Thursday
To go along with this news, shares of AVGO stock are seeing strong movement as investors sell shares. As of this writing, more than 2.2 million shares of the company’s stock have changed hands. That’s quickly approaching the company’s daily average trading volume of about 2.4 million shares.
AVGO stock is down 2.7%, and MRVL stock is up slightly as of Thursday morning.
Investors looking for more of the latest stock market news today are going to want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
