Why Broadcom Stock Is Falling Today
Shares of semiconductor company Broadcom (NASDAQ: AVGO) plummeted after it was reported that the company is testing Intel's manufacturing chip process. Broadcom designs its chips but doesn't manufacture them, with most processors currently made by Taiwan Semiconductor Manufacturing (TSMC). The stock fell by as much as 4.2% today, largely due to investors' concerns about potential implications for chip production and AI development.
- The testing of a rival manufacturer's process could be seen as a strategic move by Broadcom to assess Intel's capabilities and potentially gain an advantage in the market.
- How will the long-term consequences of Broadcom's manufacturing exploration impact its relationship with existing suppliers, such as TSMC?