MRVL stock jumps as Marvell partners with Google on custom AI chips and gets a potential .2 billion investment option tied to future chip purchases.

Updated on: Aug 19, 2026, 20:09:32 IST

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Marvell Technology is getting a major boost from Google’s growing AI chip business. The chipmaker will help Google develop its custom AI chips, while Google has also received an option to buy as much as $12.2 billion worth of Marvell shares.

The news sent MRVL stock sharply higher. Marvell shares jumped more than 11% in premarket trading after the deal was announced. At the same time, Broadcom stock fell. Broadcom, which has been Google’s main partner for developing custom AI chips, saw its shares fall more than 2% in premarket trading, according to Reuters.

Google AI chip deal

The deal gives Marvell a bigger role in Google’s AI chip plans. The agreement covers a wide range of chips and related technologies that are designed to work with Google’s Tensor Processing Unit (TPU) ecosystem. Google’s TPUs are becoming increasingly important to its AI infrastructure. The chips are designed specifically for AI workloads and are used to help power Google’s AI systems.

The demand for custom AI chips is growing quickly. Big technology companies are looking for alternatives to Nvidia’s graphics processors because custom chips can offer lower costs and can be designed for specific AI tasks. Inference is one major reason for the growing demand. Inference is the process of using an AI model that has already been trained to generate answers, predictions or other results.

Google Marvell shares

Under the agreement, Google received a warrant to buy Marvell shares. The warrant allows Google to purchase up to 58.97 million Marvell shares at a price of $206.58 per share. If Google uses the full warrant, the deal would be worth about $12.18 billion. This figure is based on Reuters calculations.

$12.2 billion Marvell stake

A $12.18 billion investment would make Google a major Marvell shareholder. If the full warrant is exercised, Google would become Marvell’s fifth-largest investor, according to LSEG data cited by Reuters.

Google will not immediately receive the entire investment option. Most of the warrant will become available only if Google meets certain purchasing targets agreed with Marvell. This means Google’s potential ownership of Marvell is linked to how much business it gives the chipmaker. The purchasing targets run through Marvell’s fiscal 2033.

The agreement shows how valuable AI chip partnerships have become. Google is investing heavily in its own AI infrastructure as demand for AI services continues to grow. Big Tech’s AI spending is also getting much bigger. Major technology companies are expected to spend more than $700 billion on AI infrastructure this year, compared with about $400 billion last year.

Marvell vs Broadcom

That spending is creating a huge opportunity for chipmakers such as Marvell. Companies building AI data centers need processors, networking equipment and other specialized hardware to support their growing AI systems. But Marvell is facing strong competition from Broadcom. Broadcom already has a major relationship with Google and has been its main custom AI chip partner.

Broadcom signed a long-term agreement with Google earlier this year. Under that deal, Broadcom will help Google develop and supply future generations of custom AI chips and other components for Google’s next-generation AI racks through 2031. The new Marvell agreement therefore puts two major chipmakers in competition for Google’s growing AI business. Marvell is now looking to capture a larger share of the custom AI chip market as Google continues to expand its AI infrastructure.

MRVL stock outlook

For MRVL stock, investors are watching what the Google partnership could mean for Marvell’s future growth. The sharp jump in premarket trading shows that the market reacted positively to the company gaining a bigger role in Google’s AI chip plans.

The key point for MRVL stock is that the deal is about more than a one-time investment. Google’s potential $12.2 billion stake is tied to future purchases from Marvell, meaning the agreement could connect Marvell’s growth with Google’s long-term AI chip demand.

The deal also highlights the wider shift happening in the AI chip market. Companies are increasingly looking beyond Nvidia and are developing custom chips that can be built for their own AI needs. Marvell now has a chance to benefit from that shift. Its partnership with Google could give the company a bigger position in the fast-growing market for custom AI chips, while also putting pressure on Broadcom’s position as Google’s leading partner in the space.

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