From Nasdaq: 2024-12-12 17:53:00

Chip stock Broadcom (NASDAQ: AVGO) took a hit as reports suggested Apple (NASDAQ: AAPL) may replace some of its hardware with its own chips. This news caused Broadcom’s shares to drop by over 1%, a bigger fall than the S&P 500 index. Apple’s Proxima chip could start appearing in products in 2025, potentially impacting Broadcom’s revenue. Although neither company has confirmed the news, investors remain cautious. Despite this, the reported switch is part of Apple’s strategy to use more proprietary components, which could affect Broadcom’s business to some extent. However, investors seem confident that any damage will be limited for now. The Motley Fool Stock Advisor team did not include Broadcom in its list of top 10 stocks to buy now, emphasizing the potential for significant returns with other investments. Stock Advisor has outperformed the S&P 500 since 2002, offering expert guidance and monthly stock picks for investors. Eric Volkman discloses holding positions in Apple, while The Motley Fool has positions in and recommends Apple and Taiwan Semiconductor Manufacturing, and recommends Broadcom.



Read more at Nasdaq: Why Broadcom Stock Sagged Today