PALO ALTO, California, August 20, 2026, 02:45 PDT — U.S. cash markets will begin trading at 06:30 PDT.
- Broadcom shares ended down 4.61% after Google broadened its chip collaboration with Marvell.
- The decline wiped about $87 billion from Broadcom’s market capitalization.
- Broadcom stock rose 0.86% in early premarket trading.
Shares of Broadcom Inc. NASDAQ:AVGO dropped 4.61% on Wednesday following Alphabet Inc.’s NASDAQ:GOOGL decision to broaden its custom-chip partnership with Marvell Technology Inc. NASDAQ:MRVL. Broadcom ended the session at $362.48. Marvell surged 9.85% to close at $237.27.
The distribution of value shifted disproportionately. Early calculations with approximate closing market capitalisations indicate Broadcom lost close to $87 billion, while Marvell gained around $17 billion. The decline outweighed the increase by over five times.
| Market reaction | August 19 close | Daily move | Estimated value change |
|---|---|---|---|
| Broadcom NASDAQ:AVGO | $362.48 | -4.61% | -$87 billion |
| Marvell NASDAQ:MRVL | $237.27 | +9.85% | +$17 billion |
| Alphabet NASDAQ:GOOGL | $344.72 | +0.15% | Little movement |
Google holds an option to purchase as many as 58.97 million Marvell shares at a price of $206.58 apiece. The warrant is valued at up to $12.18 billion if fully exercised. Depending on the achievement of performance milestones, the collaboration could bring Marvell as much as $120 billion in revenue by the end of fiscal 2033.
No official cancellation of Broadcom work has been announced. Morningstar analyst William Kerwin characterized the deal as a “big win for Marvell.” He referred to it as a “growing pie” instead of Broadcom being pushed out. Reuters
| AI-chip economics | Scale | Investor relevance |
|---|---|---|
| Google-Marvell warrant | 58.97 million shares | May align suppliers |
| Warrant exercise price | $206.58 | Lower than Marvell’s $237.27 close |
| Conditional Marvell revenue | Possibly reaching $120 billion by FY2033 | Significant, but depends on targets |
| Broadcom-Google agreement | Valid through 2031 | Current projects reportedly unchanged |
Worries about funding contribute to a further markdown. Broadcom’s AI XPV platform debuted with $35 billion in backing from Apollo Global Management NYSE:APO and Blackstone Inc. NYSE:BX, aiming for deployments over 20 gigawatts of computing power by 2028. The initial portion will support more than one gigawatt for Anthropic.
The environment for operations continues to be robust. Broadcom posted $10.8 billion in AI chip revenue for its second quarter, marking a 143% increase on the year. CEO Hock Tan projected third-quarter growth of over 200% to $16 billion.
| Scale and valuation | Broadcom | Marvell | Alphabet |
|---|---|---|---|
| Market capitalisation | $1.81 trillion | $189.17 billion | $4.19 trillion |
| Trailing P/E | 63.26 | 80.07 | 17.28 |
| One-month return | -4.30% | +22.93% | -1.76% |
| One-year return | +19.86% | +210.56% | +69.79% |
At 02:33 PDT in premarket trading, Broadcom edged up 0.86% to $365.60, while Marvell eased 0.42% to $236.27. The early moves point to a modest pullback following a strong rotation on Wednesday.
| Analyst recommendations | Consensus | Analysts | Average target | Implied upside |
|---|---|---|---|---|
| Broadcom NASDAQ:AVGO | Strong Buy | 48 | $527.88 | +45.63% |
| Marvell NASDAQ:MRVL | Strong Buy | 43 | $256.91 | +8.28% |
| Alphabet NASDAQ:GOOGL | Strong Buy | 64 | $427.52 | +24.02% |
Upcoming results are approaching rapidly. Marvell reports on August 27, with Broadcom scheduled for September 2. Investors are looking for proof that Google’s broader supplier base is impacting Broadcom’s revenue, rather than only shifting bargaining leverage.
Risks: Google could move additional custom-chip projects beyond what has been publicly indicated. Broadcom may also face vulnerabilities from sizable financing arrangements, which might lead to issues with customer credit or lease payments. On the other hand, a swift increase in AI demand could provide enough market opportunity for both providers, suggesting that Wednesday’s selloff may have been overdone.
Related articles: NASDAQ:AVGO
Broadcom −4.61%
Premarket checked: 20 Aug 2026, 05:33 EDT
One deal, unequal value transfer
What Google actually agreed
Analyst recommendation gap
| Stock | Consensus | Avg target |
|---|---|---|
| AVGO · 48 | Strong Buy | $527.88 |
| MRVL · 43 | Strong Buy | $256.91 |
| GOOGL · 64 | Strong Buy | $427.52 |
