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Broadcom Stock Slides Amid AI Chip Deal Rivalry
29 Aug
Summary
- Broadcom stock trades below its 52-week high, underperforming tech ETFs.
- Competitor Marvell's deal with Google for AI chips impacts AVGO's position.
- Analysts maintain a 'Strong Buy' consensus with significant upside potential.
Broadcom Inc. (AVGO), a global designer of semiconductor devices and infrastructure software, is currently experiencing market headwinds. As of August 29, 2026, the stock trades 24.9% below its 52-week high of $495, achieved on June 3, and has underperformed the State Street Technology Select Sector SPDR ETF (XLK) over the past three months and year. This underperformance has been exacerbated by recent developments in the artificial intelligence chip sector.
On August 19, AVGO shares dropped 4.6% after competitor Marvell Technology announced a strategic agreement to develop custom AI chips for Google. This partnership has led investors to question Broadcom's established position as Google's incumbent custom silicon partner for its Tensor Processing Unit ecosystem. While Broadcom has faced increased competition, including from NVIDIA Corporation (NVDA), analysts remain optimistic.
Despite recent stock performance, 42 analysts tracking AVGO collectively rate it as a 'Strong Buy.' The mean price target of $517.31 indicates a projected 39.2% increase from current trading levels, signaling strong confidence in Broadcom's future prospects.
