What's Going On With Broadcom Shares Monday?

Broadcom, Inc. (NASDAQ:AVGO) stock traded lower on Monday after Huawei announced it was preparing a new artificial intelligence (AI) chip as an alternative to Nvidia’s H20 line.

The Details: Broadcom, along with the broader semiconductor industry, is moved lower Monday following Huawei’s announcement. Huawei intends to start delivering its advanced 910C AI chip to customers in China as early as next month, according to Reuters.

The chip matches the performance of Nvidia's H100 by combining two 910B processors into a single unit using advanced integration techniques. President Donald Trump's administration recently implemented licensing requirements for selling Nvidia's H20 and select AMD chips to China.

Broadcom shares may be trading lower as investors evaluate the competitive risk from Huawei and its potential impact on Broadcom's presence in the Chinese market. Ongoing concerns about tariffs and trade restrictions may also be weighing on sentiment across the chip sector.

AVGO Price Action: Broadcom shares closed 2.80% lower at $166.21 on Monday, according to data from Benzinga Pro.

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