Marvell Surges Over 13% Pre-Market After Striking Custom Chip Deal With Google

TradingKey - Marvell Technology (MRVL) stock surged over 13% in US pre-market trading on Wednesday. Market reports state that the company reached a custom chip partnership agreement with Google (GOOGL), signaling that the partnership negotiations that had been ongoing for months made substantive progress. Marvell is expected to further participate in Google's AI infrastructure buildout and expand its market share in the custom AI chip market for major cloud computing companies.

Marvell Technology stock price chart, Source: FUTUBULL

The partnership between the two companies first drew market attention in April this year. Reports at the time indicated that Google was in discussions with Marvell to co-develop two custom AI chips: one a memory processing chip to complement Google's TPU, and the other a new type of TPU specifically designed for AI model inference. The news drove a noticeable rally in Marvell's stock at the time.

Google has been rapidly expanding its investment in in-house AI chips in recent years. Compared with directly purchasing general-purpose GPUs, custom chips designed for specific AI tasks can achieve a better balance among performance, power consumption, and cost. Google has long partnered with Broadcom (AVGO) to develop TPUs, and has extended their cooperation to 2031. Therefore, bringing in Marvell does not mean replacing Broadcom; rather, it is more likely aimed at expanding chip supply by adding a new partner to meet the rapidly growing demand for AI training and inference.

For Marvell, the company has been rapidly shifting its business focus toward AI data centers in recent years, with its custom chip business becoming one of its main growth engines. If the Google-related chips enter mass production in the future, Marvell will secure further long-term orders from hyperscale cloud customers while reducing its AI business's reliance on a small number of existing projects. Previous data showed that Marvell's data center revenue reached approximately $6.1 billion for fiscal year 2026, with its custom chip business reaching an annualized revenue scale of about $1.5 billion, and the company has secured projects from multiple major cloud service providers.