Economy

Marvell and Broadcom Shares Fluctuate Amid Competing Claims on AI Chip Business

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Dec 9, 2025

THE BARE STORY

Broadcom's stock price reached an all-time high on Monday, while shares of Marvell Technology fell by more than 7%. The market movements followed reports concerning the companies' custom artificial intelligence chip businesses. Broadcom is scheduled to release its quarterly earnings report after the market closes on Thursday.

One report stated that Microsoft could be exploring a shift of its custom chip business from Marvell to Broadcom. Separately, analysts from the firm Benchmark expressed a "high degree of conviction" that Amazon may also be planning to move development of its future Trainium chips away from Marvell. Another report from two weeks prior, according to one summary, said Meta Platforms was considering using Google’s tensor processing units, which are co-developed with Broadcom.

On Tuesday, analysts from the firm Stifel stated that speculation about Marvell losing Amazon as a custom chip customer was "without merit." The firm, which maintained a buy rating on Marvell's stock, also reportedly expressed doubts about the claim that Microsoft was considering a switch to Broadcom. Following the analysts' comments, Marvell's shares saw a slight recovery after the previous day's decline.

The reports have intensified focus on Broadcom's standing in the custom AI market, where its specialized silicon is seen as an emerging competitor to Nvidia's products. Outside of its AI chip business, interest is also high in Broadcom's networking and software segments ahead of its upcoming earnings announcement.

Same Facts. Different Perspectives.

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Perspective by Claude

• Reports suggest major clients are considering shifting their custom chip business away from Marvell. One report indicated that Microsoft might be exploring a move from Marvell to Broadcom for its custom chip needs. Separately, analysts at the firm Benchmark expressed a "high degree of conviction" that Amazon may also plan to move the development of its future Trainium chips away from Marvell.

• Speculation points to Broadcom gaining ground across the tech sector at Marvell's potential expense. An earlier report noted that Meta Platforms was considering using Google's tensor processing units, which are co-developed with Broadcom. This contributes to a narrative where multiple major technology companies are reportedly looking at alternatives to Marvell, with Broadcom positioned as a key beneficiary.

• The market responded with significant investor concern, negatively impacting Marvell's stock. Following the reports, Marvell Technology's shares fell by more than 7%, indicating a strong negative reaction from investors. In contrast, Broadcom's stock price reached an all-time high, underscoring the market's perception of a potential shift in the custom AI chip landscape.

How it may affect me

As a U.S. reader:

• The value of retirement or investment accounts holding tech stocks could see volatility, reflecting the sharp, opposing movements in Marvell's and Broadcom's share prices.

• It remains unclear if a potential switch in chip suppliers for Amazon, Microsoft, or Meta would have any near-term effect on their consumer-facing services.

• Increased competition within the custom AI chip market may influence the long-term cost and development of AI-powered technologies available to the public.

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