Broadcom and Marvell shares dropped 4% following Broadcom CEO Hock Tan's warning that capital shortages, not chip supply, could become the next bottleneck for AI chip development. Both companies design custom AI chips for a limited number of large cloud customers under multi-year contracts, making them vulnerable if those customers reduce funding. This contrasts with companies like NVIDIA, which serve a broader customer base. Investors are now concerned about whether cloud buyers will maintain their AI spending, potentially delaying revenue for Broadcom and Marvell.
As of Oct 17, 2026 01:11 WIB, Broadcom (AVGO) shares are trading at USD 330.60 on Pluang, down 3.99% for the day, with a market cap of $1.64 trillion. Marvell (MRVL) is priced at USD 230.22, down 4.57%, and holds a market cap of $216.80 billion. Despite the CEO's caution about capital shortages potentially slowing AI chip development, Broadcom maintains a strong buy interest on Pluang, with 85% of orders favoring buying.
Broadcom Inc. maintains a Strong Buy rating due to its solid AI revenue growth and a clear path to reaching its $115 billion revenue target by 2027. The company needs only about 12% quarterly AI revenue growth going forward, which is slower than rece...
The VanEck Semiconductor ETF (SMH) is recommended as a Buy due to strong capital expenditure growth driven by AI investments and a recent sector price correction. SMH offers diversified exposure to leading semiconductor companies like NVIDIA, TSMC, A...
Broadcom reported its best quarter ever with strong AI semiconductor revenue growth of 221% and software segment margins near 84%, yet its stock is nearly flat for the year. An investor highlights that slower-growing segments provide stable cash flow...
Nvidia reported $96.22 billion in revenue, more than doubling year over year, driven by its comprehensive AI systems including data centers and networking. Broadcom's AI chip sales grew 221%, focusing on custom chips designed to replace core AI facto...
Broadcom is expected to see its AI-related revenue double in fiscal year 2027 and then double again in fiscal year 2028, increasing the AI segment to 85% of its business. Despite concerns about customer concentration and off-balance sheet credit risk...
