Broadcom Inc. (AVGO) closed at $486.79 in the latest trading session, marking a +0.44% move from the prior day.
Marvell Technology Inc on Tuesday said it has agreed to acquire chip startup Innovium in a $1.1 billion all-stock deal aimed at bolstering Marvell's share of networking chips sold to large cloud-computing companies. Marvell's rival, Broadcom Inc, currently dominates the market for chips that go into the switches that help move digital information around inside massive data centers owned by cloud players like Amazon Web Services, Microsoft Corp and others. Marvell took a step toward getting into that market last year with its $10 billion purchase of Inphi Corp, whose chips help connect the switches with fiber optic cables.
Marvell Technology Group (NASDAQ: MRVL) and Broadcom (NASDAQ: AVGO) have delivered strong upside to investors in the past year thanks to catalysts such as the deployment of 5G wireless networks, increase in data center capacity, higher usage of chips in the automotive industry, and the booming demand for 5G smartphones. Samsung is using the chip platform to power its massive MIMO (multiple-input multiple-output) radios that are in tremendous demand in the 5G era.