Broadcom steadies after Google’s Marvell deal

Broadcom shares were slightly higher at $364.14 in early Thursday trading after Wednesday’s selloff tied to Google’s expanded custom-chip partnership with Marvell Technology. The Invesco QQQ Trust was down 0.7% to $710.90, while the iShares Semiconductor ETF was essentially unchanged at $517.27, suggesting the pressure was concentrated in custom silicon rather than the wider chip sector. Intel and Advanced Micro Devices each fell 1%.

Google’s deal includes warrants to purchase up to $12.2 billion in Marvell stock, linking the companies across custom XPU and networking work. Marvell rose 10% Wednesday to $237.27 as traders treated the structure as a direct win against Broadcom’s TPU business, though Broadcom’s existing TPU commitments were described as intact.

Broadcom’s case still rests on large AI infrastructure targets. Management has guided Q3 FY2026 AI semiconductor revenue to $16 billion, up over 200% year on year, after AI semiconductor revenue reached $10.8 billion in Q2 FY2026, up 143% year over year (YoY). It has also reiterated a target of in excess of $100 billion in AI semiconductor revenue for fiscal 2027, with visibility running through 2028.

ARK Invest bought 55,548 Broadcom shares on Wednesday and trimmed AMD, signaling confidence in the pullback. Through Wednesday’s close, Broadcom was up 5% year to date (YTD), trailing Marvell’s 180% gain and the iShares Semiconductor ETF’s 73% rise, while Intel, AMD and Google were up 151%, 118% and 10% YTD, respectively.