Marvell (MRVL) Stock Jumps 12% After Google Custom Chip Deal

TLDR

• Marvell Technology stock jumped over 12% in premarket trading after announcing an expanded chip partnership with Google.
• Google received a warrant to buy up to 58.97 million Marvell shares at $206.58 each, worth up to $12.2 billion if fully exercised.
• The deal covers AI inference accelerators, storage controllers, network interface controllers, and memory interface controllers tied to Google’s TPU ecosystem.
• Warrant shares vest based on Google hitting $500 million purchasing targets per tranche, running through fiscal 2033.
• Broadcom (AVGO), Google’s existing custom chip partner, fell over 3% on the news.

Marvell Technology (MRVL) surged more than 12% in premarket trading on Wednesday after the company announced an expanded partnership with Google to develop custom AI chips.

Marvell Technology, Inc., MRVL

The deal was formalized on July 29, with the warrant issued on August 18. Google received the right to purchase up to 58.97 million Marvell shares at $206.58 per share.

If Google exercises the full warrant, the stake would be worth roughly $12.2 billion. That would make Alphabet the fifth-largest investor in Marvell, according to LSEG data.

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