Broadcom stock dinged in final minutes on report Apple working on its own WiFi/Bluetooth chips

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Broadcom Inc. shares closed sharply lower Monday in the final minutes of trading following a report that Apple Inc. was working on its own WiFi and Bluetooth chips, which would make Broadcom’s unnecessary in iPhones and other Apple mobile devices.

Broadcom AVGO, -1.96% shares traded as high as $601.67 on Monday, a gain of 2.3%, but dropped in a matter of seconds to a low of $560.56, for a 4.7% intraday loss, before finishing the day down 2% at $576.89.

Toward the end of the trading day, Bloomberg News reported that Apple AAPL, +0.41% had in place plans to release its first modem chip at the end of 2024 or early 2025, giving the consumer-electronics giant little reason to buy those chips from Broadcom.

Broadcom shares slipped an additional 0.8% after hours. Back in December, Broadcom’s “excellent backlog management” earned it praise from Wall Street, following an earnings report in which Broadcom CEO Hock Tan refused to provide a full-year outlook as the company scrubbed its backlog.

In comparison, the S&P 500 Index SPX, -0.08% finished down less than 0.1% on Monday, the tech-heavy Nasdaq Composite index COMP, +0.63% advanced 0.6%, and Apple shares closed up 0.4% at $130.15.

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