Broadcom stock dinged in final minutes on report Apple working on its own WiFi/Bluetooth chips
By Wallace Witkowski
Broadcom Inc. shares closed sharply lower Monday in the final minutes of trading following a report that Apple Inc. was working on its own WiFi and Bluetooth chips, which would make Broadcom's unnecessary in iPhones and other Apple mobile devices.
Broadcom (AVGO) shares traded as high as $601.67 on Monday, a gain of 2.3%, but dropped in a matter of seconds to a low of $560.56, for a 4.7% intraday loss, before finishing the day down 2% at $576.89.
Toward the end of the trading day, Bloomberg News reported that Apple (AAPL) had in place plans to release its first modem chip at the end of 2024 or early 2025, giving the consumer-electronics giant little reason to buy those chips from Broadcom.
Broadcom shares slipped an additional 0.8% after hours. Back in December, Broadcom's "excellent backlog management" earned it praise from Wall Street, following an earnings report in which Broadcom CEO Hock Tan refused to provide a full-year outlook as the company scrubbed its backlog.
In comparison, the S&P 500 Index finished down less than 0.1% on Monday, the tech-heavy Nasdaq Composite index advanced 0.6%, and Apple shares closed up 0.4% at $130.15.
(END) Dow Jones Newswires
January 10, 2023 08:45 ET (13:45 GMT)
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