US Stock Market Move | Microsoft Corporation is in talks with Broadcom Inc. for a custom chip collaboration. Marvell Technology, Inc. (MRVL.US) plunges nearly 10%.

On Monday, Marvell Technology, Inc. (MRVL.US) plummeted nearly 10%, marking its largest intraday drop since August 29th, and is now trading at $89.82. According to reports, a source involved in the negotiations revealed that Microsoft Corporation (MSFT.US) is in talks with Broadcom Inc. (AVGO.US) to collaborate on designing future customized chips. If the collaboration is successful, Microsoft Corporation will switch from its current customized chip supplier, Marvell Technology, Inc., to Broadcom Inc. Meanwhile, two sources involved in the negotiations stated that Marvell has recently agreed to waive some of the upfront engineering fees for chip design in order to secure more business from Meta. Additionally, three sources involved in the chip development disclosed that Meta plans to launch this customized chip in 2027.