Posted 3/8/2024, 5:42:18 PM
Chipmakers Fall Despite AI Hopes as Broadcom, Marvell Issue Weak Forecasts
- Chipmakers Broadcom and Marvell shares fell sharply after issuing disappointing forecasts despite AI hype
- Broadcom maintained outlook despite projecting $10B in AI chip sales by 2024; Marvell forecast lower than expected
- Selloff comes after record high closes for both companies day prior amid investor hopes of AI computing boom
- Companies sell networking chips to move large AI data; seen as beneficiaries of big tech spending
- Marvell and Broadcom cited weak demand from customers like cloud and telecom companies clearing inventory