Broadcom (NASDAQ:AVGO) and Bytedance are leading artificial intelligence (AI) stocks news on Monday following news of a partnership to develop new chips.
According to insiders, Broadcom and Bytedance are working together to develop advanced 5-nanometer AI chips. This comes as Bytedance has bought 5-nanometer chips from Broadcom in the past.
Investors will also note that the reports claim that Taiwan Semiconductor (NYSE:TSM) will manufacture the chips for the companies and that these chips wouldn’t violate current chip export restrictions.
The insiders behind these reports claim that the development of the chips is going well. However, they also point out that Taiwan Semiconductor is unlikely to start manufacturing the chips this year.
What This Means for AI Stocks
Today’s news is another sign that the AI chip market continues to remain strong. The sector has seen strong growth throughout 2024 and it looks like that’s going to continue for the rest of the year. That means it could benefit AVGO stock and TSM stock when chip production does begin.
Despite the good news, AVGO stock is down 2.4%, while TSM stock is down 3.6% as of Monday afternoon.
Investors will want to keep reading for all of the latest stock market stories!
We have all of the hottest stock market news traders need to know about on Monday! Among that is what’s going on with shares of Chinese electric vehicle (EV) stocks, the latest on Nvidia (NASDAQ:NVDA) shares and more. All of this info is ready at the following links!
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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.
