Marvell Issues Google a $12.2 Billion Stock Warrant in Custom AI Chip Partnership

Marvell Technology disclosed a commercial agreement with Alphabet's Google to develop custom AI chips, accompanied by a warrant granting Google the right to purchase up to 58.97 million Marvell shares at an exercise price of $206.58 per share, for a total potential value of approximately $12.2 billion, representing roughly a 7% stake in the chipmaker. Marvell shares surged as much as 13% in Wednesday trading to around $243.66, reflecting investor enthusiasm for the deepened partnership as Google and other hyperscalers accelerate efforts to build proprietary silicon and reduce dependence on Nvidia. Analysts at Raymond James reiterated a Strong Buy rating on Marvell, with the sell side broadly characterizing the deal as a significant positive.

The news hit a direct rival: Broadcom shares fell roughly 5% to $359.66, as investors interpreted the Google win as a competitive setback for Broadcom's custom chip business, with additional concern cited around its VMware integration and financing. Alphabet shares were largely unmoved on the day.