Marvell Technology Shares Rise After AI Chip Deal with Alphabet
Shares of Marvell Technology (NASDAQ: MRVL) surged by nearly 10% on Wednesday following an agreement to supply custom artificial intelligence chips for Google's cloud infrastructure and AI operations. The deal involves a broad range of silicon products that integrate with Google’s tensor processing units, including components designed to accelerate data flow and network performance. As part of the partnership, Alphabet received a warrant allowing it to purchase up to 58 million shares of Marvell at $206.58 per share, totaling approximately $12.2 billion in potential value. Analysts view this as a significant positive for Marvell’s future growth and market position. RBC Capital Markets analyst Srini Pajjuri has set an optimistic price target of over 50% higher than current levels at $360 per share, reflecting confidence in the company's role within the expanding AI data center industry.
