Google Considers Dropping Broadcom as AI Chip Supplier, Marvell Shares Surge

Broadcom's stock fell 6% after a report revealed that Google executives have discussed dropping the company as a supplier of artificial intelligence chips, opting to design the chips in-house instead. The move could save Google billions of dollars annually. Google has been increasing its chip investments to compete with Microsoft in the generative AI market. The report also mentioned that Google has been working to replace Broadcom with Marvell Technology as the supplier for chips connecting servers to ethernet switches in its data centers. Broadcom is considered the second-biggest beneficiary of the generative AI boom after Nvidia.