Broadcom Has Seen Its Biggest Customer Drop a Key Chip Before. History Says What the Stock Did Next.

Broadcom's stock fell ~5% on August 19 after Marvell announced an expanded custom chip agreement with Google, Broadcom's most important AI customer. However, historical precedent from Apple's 2023 design-away announcement suggests these transitions are slow and partial. After Apple dropped a Broadcom wireless chip, the company's revenue nearly doubled and stock gained over 500% as AI demand surged. The key difference this time is that Google's orders directly impact Broadcom's core AI business, making the concentration risk more significant at current valuations.