Marvell Technology (MRVL.US) Plunges Nearly 10% on Reports of Microsoft-Broadcom Custom Chip Talks

Stock News12-08 23:51

On Monday, Marvell Technology (MRVL.US) saw its shares drop nearly 10%, marking its largest intraday decline since August 29, with the stock currently trading at $89.82. The decline followed reports that Microsoft (MSFT.US) is in discussions with Broadcom (AVGO.US) to collaborate on designing future custom chips. If the partnership materializes, Microsoft may shift its custom chip supply from Marvell to Broadcom.

Separately, sources involved in negotiations revealed that Marvell recently agreed to waive certain upfront engineering fees for chip design in an effort to secure more business from Meta. Additionally, three individuals familiar with the chip development process disclosed that Meta plans to launch this custom chip by 2027.

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