Google Explores Partnership with MediaTek for AI Chip Production, Impacting Broadcom

Broadcom Stock Is Moving Lower Monday: What's Behind The Move? - Broadcom (NASDAQ:AVGO)

Join Nic Chahine live on Wednesday, March 19, at 6 PM ET for a step-by-step breakdown of how to to capitalize on post-Fed volatility and manage risk in this fast-moving market. Register for this free strategy session today. Broadcom Inc AVGO shares are trading lower Monday following reports indicating that Alphabet Inc GOOG is preparing to partner with MediaTek. What To Know: According to a report from The Information, Google is planning to partner with Taiwan's MediaTek as it seeks out cheaper chips. The report indicates that the two companies will partner to work on the next version of Google's AI chips, Tensor Processing Units. The chips are expected to be made next year. Google has used Broadcom as its chip designer over the past several years. Google hasn't yet cut ties with Broadcom, according to Reuters. The report indicates that Google decided to go with MediaTek in part because the company charges less per chip compared to Broadcom. Google also reportedly likes that MediaTek has a strong relationship with Taiwan Semiconductor Manufacturing Company Ltd TSM. Check This Out: Huawei Develops In-House Chips To Counter US Sanctions, Leap Ahead In The Tech War AVGO Stock Prediction 2025 Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory. Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable. For Broadcom, the 200-day moving average sits at $181.69, according to Benzinga Pro, which is below the current share price. For more on charts and trend lines, see a description here. AVGO Price Action: Broadcom shares were down 1.51% at $192.58 at the time of publication Monday, according to Benzinga Pro. Photo: Shutterstock. AVGOBroadcom Inc$192.38-1.62%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum91.91Growth76.26Quality85.03Value9.28Price TrendShortMediumLongOverviewGOOGAlphabet Inc$166.10-0.91%TSMTaiwan Semiconductor Manufacturing Co Ltd$174.660.33%Market News and Data brought to you by Benzinga APIs

Broadcom falls on report Google may work with MediaTek on AI By Investing.com

Investing.com -- Shares of Broadcom (NASDAQ:AVGO) dropped at the open on Monday following a report that Google (NASDAQ:GOOGL) is exploring a partnership with MediaTek to help design and produce some of its artificial intelligence (AI) chips, potentially reducing Broadcom's exclusive role in the business. AVGO stock fell as low as $187.50 at the open before recovering slightly to $193.82, down 0.9%. According to The Information, Google is preparing to work with Taiwan-based MediaTek on the next generation of its Tensor Processing Units (TPUs), which are expected to be produced next year. The report emphasized that the move does not mean Google has cut ties with Boradcome, with the companies said to still be in talks to continue co-designing some TPU chips. However, MediaTek's potential involvement could mean that Broadcom will now have to share the TPU business with a rival. Pricing disputes with Broadcom reportedly influenced Google's decision to work with MediaTek. The Information cited sources stating that MediaTek offers lower costs per chip while maintaining a strong relationship with Taiwan Semiconductor Manufacturing Co. (TSMC), which produces the TPUs. Google's TPU chips are central to its AI strategy, powering internal AI research, cloud computing, and services like Google Search, YouTube, and Gemini AI models. The company spent an estimated $6 billion to $9 billion on TPUs last year, but it remains one of Nvidia's biggest customers, having ordered over $10 billion worth of Nvidia's flagship Blackwell chips. While Google is reportedly working toward developing more AI chips in-house, it is still expected to rely on external partners like Broadcom and MediaTek for chip production, packaging, and quality testing, according to The Information.