Broadcom Inc ( AVGO ) shares are trading lower Monday following reports indicating that Alphabet Inc ( GOOG ) is preparing to partner with MediaTek.

What To Know: According to a report from The Information, Google ( GOOG ) is planning to partner with Taiwan’s MediaTek as it seeks out cheaper chips.

The report indicates that the two companies will partner to work on the next version of Google’s AI chips, Tensor Processing Units. The chips are expected to be made next year.

Google ( GOOG ) has used Broadcom ( AVGO ) as its chip designer over the past several years. Google ( GOOG ) hasn’t yet cut ties with Broadcom ( AVGO ), according to Reuters.

The report indicates that Google ( GOOG ) decided to go with MediaTek in part because the company charges less per chip compared to Broadcom ( AVGO ). Google ( GOOG ) also reportedly likes that MediaTek has a strong relationship with Taiwan Semiconductor Manufacturing Company Ltd ( TSM ) .

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AVGO Stock Prediction 2025

Equity research analysts on and off Wall Street typically use earnings growth and fundamental research as a form of valuation and forecasting. But many in trading turn to technical analysis as a way to form predictive models for share price trajectory.

Some investors look to trends to help forecast where they believe a stock could trade at a certain point in the future. Traders believe that when a stock is above its moving average, it is a generally bullish signal, and when it crosses below, it is a more negative signal. Investors could use trend lines to make an educated guess about where a stock could trade at a later date if conditions remain stable.

For Broadcom ( AVGO ), the 200-day moving average sits at $181.69, according to Benzinga Pro, which is below the current share price. For more on charts and trend lines, see a description here.

AVGO Price Action: Broadcom ( AVGO ) shares were down 1.51% at $192.58 at the time of publication Monday, according to Benzinga Pro.