AI Stock Alert: Broadcom and ByteDance cooperate on AI chip deal

Broadcom (NASDAQ:AVGO) And ByteDance are leading artificial intelligence (AI) stock news on Monday following news of a partnership to develop new chips.

According to insiders, Broadcom and Bytedance are working together to develop advanced 5-nanometer AI chips. This is because Bytedance has already purchased 5-nanometer chips from Broadcom in the past.

Investors will also note that the reports claim Taiwan Semiconductor (NYSE:TSM) will manufacture the chips for the companies. The reports also state that these chips would not violate existing export restrictions.

The insiders behind these reports claim that the development of the chips is progressing well. However, they also point out that Taiwan Semiconductor is unlikely to start producing the chips this year.

What this means for AI stocks

Today’s news is another sign that the AI ​​chip market remains strong. The sector has seen strong growth in 2024 and it looks like that will continue for the rest of the year. That means AVGO and TSM stock could benefit when chip production begins.

AVGO shares are down 2.4%, while TSM shares are down 3.6% since Monday afternoon.

Investors should read on to find out the latest news from the stock market!

We have all the hottest stock market news traders need to know on Monday! This includes what’s going on with Chinese electric vehicle (EV) stocks, the latest news on NVIDIA (NASDAQ:NVDA) stocks and more. All this information can be found at the links below!

More stock market news from Monday

At the time of publication, William White had no position (either directly or indirectly) in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com Publishing guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2024/06/ai-stocks-alert-broadcom-bytedance-partner-up-on-ai-chip-deal/.

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