Alphabet Expands Chip Partnership with Marvell, Raising Questions About Broadcom
Broadcom (AVGO) has seen a stock price drop of over 10% in two weeks due to concerns that Alphabet is expanding its AI chip collaboration with Marvell Technologies (MRVL). This shift raises fears about potential pricing pressure or reduced demand for Broadcom’s custom chips. However, analysts argue that the overall market for AI chips is growing rapidly and Broadcom remains a leader in application-specific integrated circuits (ASICs), similar to how Nvidia dominates GPUs. Alphabet continues to rely on both Marvell and Broadcom as it scales its data center operations amid rising AI demand. Diversifying suppliers helps mitigate supply chain risks, but does not necessarily mean reduced orders for any single provider. Broadcom recently reported a 48% year-over-year revenue increase in Q2 fiscal 2026, with strong guidance from management indicating continued growth.
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Topics: AI chips Alphabet Broadcom Marvell Technologies semiconductors