Broadcom Inc (NASDAQ: AVGO) stock is trading lower Thursday amid reports of Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google dropping the supplier of artificial intelligence chips by 2027.
Meanwhile, Marvell Technology, Inc (NASDAQ: MRVL) stock started gaining amid reports of Google working since 2022 to replace Broadcom with chipmaker Marvell for an advanced chip internally code-named Granite Redux.
Google's move followed a standoff between the companies over the price Broadcom was charging for the chips, Reuters cites the Information.
Google proposes to design the chips, known as tensor processing units, in-house.
Broadcom CEO Hock Tan recently voiced that generative AI could account for over 25% of the company's semiconductor revenue in 2024.
Google has intensified investments in generative AI after Microsoft Corp (NASDAQ: MSFT)-backed OpenAI's launch of ChatGPT triggered an AI frenzy worldwide.
Google is amid efforts to integrate its Bard AI chatbot with several popular products, including Gmail, YouTube, and Google Docs.
Bard will now be able to analyze and summarize Gmail emails, search through Google Docs, and check flight prices using Google Flights, all within its main interface.
Price Actions: AVGO shares traded lower by 6.51% at $776.50 premarket on the last check Thursday. MRVL shares traded higher by 3.87% at $54.99.