Broadcom shares declined on June 26 as semiconductor peers fell following a sell-off driven by rising memory prices, with Micron and Western Digital losing over 6% and 7% respectively. Broadcom also announced a partnership with OpenAI to co-develop the Jalapeño AI inference chip for gigawatt-scale data centers in 2026.
On June 26, semiconductor stocks retreated as investors grew concerned about rising memory costs squeezing margins, with Micron and Western Digital falling over 6% and 7% respectively. Broadcom's shares dipped alongside peers like Nvidia, AMD, Intel and Marvell.
Apple raised product prices to offset surging memory costs and Microsoft increased Xbox prices, signaling that higher component expenses may be passed through to end customers and potentially dampening demand for memory chips.
Broadcom and OpenAI unveiled a jointly developed Jalapeño inference chip designed from scratch to enhance large-language model performance. The chip targets deployment in gigawatt-scale data centers starting in 2026, aiming to improve efficiency and affordability of AI services.
