Marvell Technology shares rise after deal allows Alphabet to purchase up to $12.2 billion in shares
Marvell Technology Group (MRVL) saw its stock surge 6% following a new agreement allowing Google parent company Alphabet Inc. (GOOGL) to buy up to $12.2 billion worth of Marvell shares by the end of fiscal year 2033, according to a securities filing. The deal is part of an expanded partnership between Google and Marvell on custom chips for artificial intelligence workloads. The agreement includes products that integrate with Google's Tensor Processing Unit (TPU) ecosystem, such as AI inference accelerators, storage solutions, and network interface controllers. This collaboration comes amid a broader industry trend where major tech companies are developing their own silicon to reduce reliance on third-party chipmakers like Nvidia. Google has historically partnered with Broadcom for custom chips but recently expanded its deal with Marvell in April 2024. The news of the new agreement appears to have benefited Marvell at the expense of Broadcom, whose stock fell about 5%.
Topics: AI infrastructure custom chips stock surge TPU ecosystem