Broadcom stock falls 5% on report Google may end partnership

  • Investing.com
  • Stock Market News
Broadcom stock falls 5% on report Google may end partnership
Credit: © Reuters.

Alphabet-owned Google (NASDAQ: GOOGL ) has reportedly considered ending its reliance on Broadcom (NASDAQ: AVGO ) as a supplier of high-end chips, according to The Information.

If this transition occurs, Google would take on the responsibility of designing these AI chips, known as tensor processing units (TPUs), in-house. These changes could take place as early as 2027, the report added.

Accordingly, Google executives set a goal to move away from Broadcom due to a pricing dispute between the two companies related to the chips. As a result, Google has been exploring the possibility of developing its own TPUs.

The report comes after Broadcom's CEO, Hock Tan, recently noted that generative AI could constitute more than 25% of the company's semiconductor revenue next year.

If Google decides to end its Broadcom partnership, it could have significant cost-saving implications for the tech giant, potentially measured in billions of dollars annually.

Google declined to comment to The Information.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search