Microsoft $MSFT ( ▲ 0.48% ) is reportedly in talks to shift parts of its custom chip development from Marvell $MRVL ( ▲ 0.73% ) to Broadcom $AVGO ( ▲ 2.42% ) , according to The Information. The move would mark a significant reshuffling in Microsoft’s semiconductor strategy, since Marvell currently co-designs Microsoft’s Maia ASICs that power Azure’s AI workloads.
Marvell shares briefly slipped into the red when the report surfaced but later recovered. The company has had a volatile week, tumbling on a lukewarm earnings report before surging after CEO Matt Murphy projected a stronger-than-expected $10 billion revenue outlook for next year.
The rumor also comes on the heels of Microsoft denying another recent report from The Information about lowered AI sales targets, suggesting a bit of fatigue around unconfirmed chatter. Broadcom, meanwhile, has become a growing force in custom silicon and would represent a major strategic shift for Microsoft if the discussions move forward.