Broadcom Stock Drops 2% on Possible Partnership End With Alphabet
<p><a href='https://financialmodelingprep.com/financial-summary/GOOGL'>Alphabet (NASDAQ:GOOGL)</a> is reportedly considering ending its reliance on <a href='https://financialmodelingprep.com/financial-summary/AVGO'>Broadcom (NASDAQ:AVGO)</a> as a supplier of high-end chips, specifically the AI chips known as tensor processing units (TPUs). The Information reported that Google is contemplating an in-house design approach for TPUs, which could be implemented as early as 2027.</p>
<p>Following the report, Broadcom shares fell more than 2% intra-day today.</p>
<p>This potential shift is driven by a pricing dispute between Google and Broadcom, prompting Google's executives to seek alternatives and explore the development of its own TPUs. Broadcom's CEO, Hock Tan, recently mentioned that generative AI might account for over 25% of the company's semiconductor revenue in the coming year.</p>
<p>If Google decides to terminate its partnership with Broadcom, it could lead to substantial cost savings for the tech giant, potentially reaching billions of dollars annually.</p>

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