Marvell Technology Stock Rallies on News of Potential Google AI Chip Deal
In Focus
- Marvell Technology could design two chips for Google if talks materialize
- The company specializes in data infrastructure semiconductor solutions
- A partnership with Marvell would enable Google to diversify chip design from Broadcom
Marvell Technology stock soared 6% on April 20, 2026 on news that the chip developer was in talks with Google to create AI chips. If finalized, the Marvell Google AI chip deal would lead to development of two new chips to support efficient operation of AI models.
Marvell Could Design a New TPU for Google
A report by The Information shows that the Google Marvel AI chips agreement could involve the development of a new Tensor Processing Unit (TPU) designed to run AI models. Under the deal, Marvel would also develop a memory processing unit to support Google’s TPUs.
Tech giants like Meta and Google are investing in developing their own chips to reduce reliance on external suppliers amid rising AI competition. Last week, Meta expanded its collaboration with Broadcom as part of a strategy to develop multiple generations of custom AI chips. Last year, the social media giant paid Broadcom $2.3 billion for AI chip design and related services.
Last year, Google’s TPUs excited investors with their potential to drive future revenue, with estimates showing that the AI chip could generate up to $900 billion for Alphabet. Google uses its TPUs to train AI models and for inference.
The search giant had partnered with Broadcom to design the semiconductors. Although Google TPUs are not as adaptable as NVIDIA chips, their lower cost makes them strategic as investors evaluate the efficiency of AI-related spending.
Google Moves to Diversify Chip Design
News about the potential Google-Marvell Partnership indicates that the Alphabet-owned company may be diversifying chip design services from Broadcom as demand for its chips rises. Increasingly, tech companies are exploring cheaper alternatives to NVIDIA’s costly processors.
Already, Claude Code developer Anthropic uses Google TPUs among other chips to build and run its AI software and chatbot. Marvell plays a critical role in the AI chip supply chain by specializing in data infrastructure semiconductor solutions. Both Broadcom and Marvell design processors for tech companies as demand for specialized data centers continues to soar.
Earlier this year, NVIDIA made a $2 billion investment in Marvell in a bid to enhance access to custom AI chips for customers. Marvell designs such chips using NVIDIA’s central processors and networking gear.
Last year, the AI chip designer acquired chip startup Celestial AI in a $3.25 billion deal to strengthen its leadership in AI connectivity. Celestial AI develops photonic fabric, an optical interconnect technology platform for next-generation AI computing systems.
What Does the Stock Rally Mean for Marvell Technology?
Should the premarket stock gains hold, Marvell’s market valuation could rise by more than $7 billion. Currently, the chip design company’s valuation stands at $122.15 billion. Marvell shares are trading at about 33.35 times expected earnings over the next one year, compared to roughly 27.84 times for Broadcom.
