EZchip Semiconductor Ltd. (EZCH) posted the largest decline in two years in New York on concern competitor Broadcom Corp.’s network processor will steal market share from the Israeli chipmaker.
Shares of the Yokneam, Israel-based company tumbled 9.3 percent to $39.28, the largest one-day slide since May 6, 2010. The drop swelled the U.S. stock’s discount to the company’s Tel Aviv shares to $4.48, the most on record.
Broadcom will start selling a processor unit to service provider networks, the Irvine, California-based company said in a statement distributed by PRNewswire today. The product will compete with EZchip’s chips, Sundeep Bajikar, an analyst at Jefferies & Co., wrote in an e-mailed note.
To contact the reporters on this story: Tal Barak Harif in New York at firstname.lastname@example.org; Christine Harvey in New York at email@example.com
To contact the editor responsible for this story: Emma O’Brien at firstname.lastname@example.org