Google Taps Marvell for AI Chips in $12.2 Billion Deal, Diversifying Beyond Broadcom
20 Sources
[1]
Google pits Marvell against Broadcom as it chases AI crown
It's an open secret that the major cloud providers don't actually design their custom silicon from scratch. There's not much value in reinventing the wheel, so they often outsource big and undifferentiated chunks of chip design to IP houses like Broadcom, Marvell, Arm, and others. Google's
[2]
Breakingviews - Google deal gets Marvell only so far to $1 trln
NEW YORK, Aug 20 (Reuters Breakingviews) - Marvell Technology (MRVL.O), opens new tab is basking in the glow of possibility. Already, industry kingpin and Nvidia (NVDA.O), opens new tab boss Jensen Huang had singled out the $200 billion chipmaker as the next $1 trillion company. On Wednesday, it
[3]
Marvell Technology has nearly tripled in 2026. Wells Fargo says there are more gains ahead
Marvell Technology has been on a tear this year, and its shares should only continue to climb as the company gears up to post its latest quarterly financial results, according to Wells Fargo. The investment bank has an overweight rating on the chipmaker. It hiked its price target to $310 from $240,
[4]
Marvell gives Google a $12.2bn share option for buying chips
Marvell has given Google a warrant to buy up to $12.2bn of its shares, unlocked as Google buys its custom AI chips. Marvell jumped as much as 14%, Broadcom fell about 5%, and the deal adds to worries about 'circular' arrangements in the AI chip market. Marvell Technology has agreed to give Google
[5]
Marvell pops 6% on AI chip deal that lets Google buy up to $12.2 billion in shares
* Marvell Technology stock popped on a deal for Google to buy up to $12.2 billion in shares. * The deal is part of Google and Marvell's partnership on custom chips and includes products that "attach to the TPU ecosystem." * Google has largely been working with Broadcom on custom chips In this
[6]
Marvell grants Google $12.2 billion stock warrant in AI chip deal
The underlying commercial agreement, signed on July 29, covers a range of chips built to work with Google's tensor processing unit ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute, the company
[7]
Marvell shares jump 9.8% on Google chip design deal
Marvell Technology Inc. today disclosed that it has won a contract to design artificial intelligence chips for Google LLC. The deal also extends to other areas. Notably, Marvell has issued a warrant that will enable Google to purchase about 59 million units of common stock. The shares are worth
[8]
Can Marvell stock sustain its rally ahead of Q2 earnings? - Marvell Stock Gets a Fresh AI Boost
Can Marvell stock sustain its rally ahead of Q2 earnings? 1/5 Marvell Stock Gets a Fresh AI Boost Marvell Technology shares surged after the semiconductor company announced a major collaboration with Google to develop custom AI chips. The deal has strengthened investor confidence in Marvell's
[9]
What's Going On With Marvell Stock Thursday? - Alphabet (NASDAQ:GOOGL), Alphabet (NASDAQ:GOOG), Marvell T
Marvell's Google AI Deal Could Unlock a Staggering $120 Billion Opportunity, Analyst Says Marvell Technology Inc. (NASDAQ:MRVL) could unlock a major new artificial intelligence revenue opportunity through its expanded partnership with Alphabet Inc.'s (NASDAQ:GOOGL) Google, according to
[10]
Marvell shares jump 8% after chipmaker hands Google option to buy $12.2 billion stake
Marvell shares surged 8% after securing a Google agreement to develop custom AI chips and related technologies. Google received a warrant for up to 58.97 million shares worth about $12.18 billion, strengthening Marvell's position in AI infrastructure. Marvell Technology shares surged 8% after the
[11]
Broadcom Rival Marvell Surges After Google Strikes AI Chip Deal, Gets Option to Buy $12.2B Stake - Marvel
Marvell Technology, Inc. (NASDAQ:MRVL) is up more than 5% Wednesday after revealing a sweeping custom chip agreement with Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) that could sharply expand its role in Google's artificial intelligence infrastructure. As part of the deal, Google received a warrant
[12]
Marvell stock jumps on expanded $120 billion Google chip deal
Most chip suppliers spend years trying to win a single hyperscale customer. Marvell Technology (MRVL) just deepened its ties with all three of the largest ones, and it did so by giving Google a reason to keep spending. On August 19, 2026, Marvell disclosed an expanded custom chip agreement with
[13]
Marvell gives Google option to buy $12.2 billion stake in custom chip deal
Marvell said it would develop AI inference accelerators, storage, networking and memory interface controllers and near-memory computing technologies for Google. Demand for custom chips such as Google's tensor processing units (TPUs), used for AI workloads, has surged in recent years as businesses
[14]
Marvell vs. Broadcom: the custom silicon shift
Being a company's only chip partner feels secure, until that company starts talking to competitors. In the high-stakes economy of artificial intelligence, where data center buildouts run into the tens of billions of dollars, cloud giants can no longer afford to tie their infrastructure to a single
[15]
Why Marvell Technology Stock Is Surging Wednesday Morning - Marvell Technology (NASDAQ:MRVL)
Marvell Technology Inc. (NASDAQ:MRVL) shares are surging Wednesday morning following an SEC Form 8-K filing disclosing a major commercial agreement and warrant deal with Google. Here's what investors need to know. * Marvell Technology shares are powering higher. Why is MRVL stock up today? MRVL
[16]
Marvell Stock Jumps on Google AI Chip Deal Ahead of Q2 Earnings
The agreement could support up to $120 billion in qualifying revenue through Marvell's fiscal 2033. This figure reflects the warrant's maximum purchase milestones, not a firm order from Google. The announcement comes one week before Marvell reports fiscal second-quarter results on August
[17]
Marvell gives Google option to buy US$12.2 billion stake in custom AI chip deal
Marvell Technology will help develop Google's in-demand custom chips and has offered the search giant the right to buy a potential US$12.2 billion stake, the latest deal in which Big Tech is investing in the suppliers powering its AI build-out. Shares of the chipmaker jumped nearly 8 per cent as
[18]
Rosenblatt raises Marvell stock price target to $300 on AI chip growth By Investing.com
Investing.com - Rosenblatt Securities raised its price target on Marvell Technology Inc. (NASDAQ:MRVL) to $300 from $240 while maintaining a Buy rating as analyst Sajal Dogra assumes coverage of the semiconductor company. The firm expects Marvell to report strong second-quarter results Thursday
[19]
Marvell gives Google option to buy US$12.2 billion stake in custom chip deal
Marvell Technology said on Wednesday it has issued Alphabet's Google a warrant to buy a stake worth about US$12.18 billion as part of a deal to help develop custom chips for the search giant. Shares of the custom chipmaker jumped more than 11 per cent in premarket trading, while larger rival
[20]
JPMorgan reiterates Marvell stock rating on Google chip deal By Investing.com
Investing.com - JPMorgan reiterated an Overweight rating and $240.00 price target on Marvell Technology Inc. (NASDAQ:MRVL) following the company's announcement of an expanded partnership with Google. The stock currently trades at $237.27, up 234% over the past year, though InvestingPro analysis
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Google has granted Marvell Technology the right to sell up to $12.2 billion in shares through a warrant tied to custom AI chip purchases. The partnership expands Google's supplier base beyond longtime partner Broadcom, covering AI inference accelerators and components for its Tensor Processing Units ecosystem through fiscal year 2033.
Google has struck a major partnership with Marvell Technology that could reshape the AI hardware supply chain, granting the chipmaker a warrant to sell up to $12.2 billion of its shares tied directly to custom AI chip purchases
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. The deal marks a strategic shift as Google diversifies its custom silicon supply chain beyond its decade-long relationship with Broadcom.
Source: The Next Web
Marvell Secures Google's Custom AI Chip Business
Under the agreement detailed in an SEC filing dated August 18, Google can purchase up to 58,970,907 Marvell shares at $206.58 each
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. The warrant vests in tranches tied to purchasing targets, with nearly 1.4 million shares vesting in the first year and the remainder unlocking with every $500 million in chip purchases through Marvell's 2033 fiscal year4
. If Google hits all targets, the partnership could generate roughly $120 billion in custom chip sales for Marvell over that period2
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.The expanded agreement covers products that "attach to the TPU ecosystem," including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near memory compute
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. These custom AI chip components support Google's Tensor Processing Units, the in-house chips Alphabet uses to build, train, and run AI models for both internal use and cloud customers4
.Market Reactions Signal Competitive Shift
Stock movements immediately reflected the deal's competitive implications. Marvell shares jumped as much as 14 percent on the announcement day, ultimately closing up about 8 to 10 percent
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. Meanwhile, Broadcom stock fell approximately 4 to 5 percent as Wall Street weighed the implications of a new rival for Google's orders1
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. Alphabet remained largely unchanged4
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Source: Benzinga
Wells Fargo responded to the announcement by upgrading its Marvell price target to $310 from $240, suggesting nearly 31 percent upside from Friday's close
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. Analyst Aaron Rakers characterized Marvell as "more of an idiosyncratic chip company, one that outperforms the overall chip industry growth rate in good and bad times," projecting the company could grow revenue at a 15 to 20 percent pace over the long term while building on leading operating margins3
.Diversifying AI Chip Supply Chain Strategy
The partnership represents Google's calculated move to avoid over-reliance on any single supplier. Google has worked primarily with Broadcom on custom chips for most of the past decade, expanding that partnership as recently as April
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. Broadcom's involvement in building Tensor Processing Units was only made public earlier this year1
.Morningstar analyst William Kerwin told Reuters the deal appears to be "a big win for Marvell" but characterized it as "a growing pie at Google for new sources, rather than a competitive displacement of Broadcom"
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. The SEC filing doesn't specify which exact technologies Google will adopt, nor does it clarify Broadcom's ongoing role—it simply confirms Google isn't putting all its eggs in one IP basket1
.Google now positions itself to pit Marvell and Broadcom against each other on price and performance for custom silicon components
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. This approach mirrors how cloud providers typically acquire technologies from multiple vendors in areas like networking to ensure competitive pricing.Potential Technology Applications
Marvell has developed a comprehensive suite of hardware IP over recent years, including high-speed SerDes used in network switches and networking controllers, multi-die XPU reference designs, CXL memory controllers, and silicon photonics interconnect
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. Google's interest in Marvell may stem particularly from the photonic memory technology Marvell acquired from Celestial AI late last year1
.Unveiled earlier this month, Marvell's Photonic Fabric NIC and Photonic Fabric chiplet technologies allow multiple racks up to 50 meters away to share a common memory pool
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. Since Google's Tensor Processing Units already rely on high-speed optical circuit-switched links to communicate, the company could potentially use this technology to dynamically reallocate additional memory to different TPU clusters based on workload rather than attaching memory in fixed ratios1
. Because the link is optical, memory becomes a fungible resource that doesn't need to reside in the same system or rack.
Source: Benzinga
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Revenue Growth and Market Position
Marvell has surged 179 percent in 2026 as demand for data center infrastructure has accelerated amid the AI boom
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. Analysts polled by LSEG expect Marvell to report second-quarter revenue of $2.709 billion, up 35 percent year over year, with earnings of 92 cents per share representing nearly 38 percent growth3
. For the full fiscal year, analysts project more than 40 percent increases in both revenue and earnings per share year-over-year3
.From the remainder of this year through 2032, Marvell is estimated to generate $190 billion in revenue according to Visible Alpha
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. The Google partnership could provide an over-60 percent bump to those projections2
. If Google smoothly ramps purchases to just under $5 billion in products each quarter, pre-deal expectations that Marvell would generate $43 billion in sales in 2032 could jump to around $62 billion2
.Broader AI Industry Implications
The structure fits a pattern raising investor concerns about "circular" arrangements in the AI industry, where chipmakers' sales become tied to customers' stock or spending
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. This deal arrives days after Nvidia agreed to backstop up to $105 billion for a data center OpenAI is leasing in Ohio, and echoes AMD's October deal giving OpenAI an option to buy up to about 10 percent of its stock4
.Google, Amazon, Meta, and Microsoft have all been designing custom silicon to reduce dependence on Nvidia, whose top AI accelerators sell for tens of thousands of dollars each
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. Alphabet is expected to generate about $3 billion from TPU-related infrastructure this year, with projections reaching $25 billion in 2027 according to Citizens analyst Andrew Boone4
. A recent reshuffle of Google's AI leadership shifted power toward its cloud business, placing greater emphasis on that infrastructure4
.Watch how Google allocates orders between Marvell and Broadcom, whether the photonic memory technology appears in TPU deployments, and if other hyperscalers adopt similar multi-vendor strategies for custom AI chip components.
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