Marvell Technology has granted Google a warrant to acquire up to 58,970,907 Marvell shares at $206.58 each, representing about $12.18 billion, under a binding agreement to develop custom semiconductors for Google’s AI infrastructure. Marvell shares rose more than 11% in premarket trading after the announcement, while Broadcom shares fell more than 3%.<\/p>\n
Signed on July 29, 2026, the commercial agreement covers multiple custom chip programs linked to Google’s tensor processing unit ecosystem. The projects include AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory computing technologies.<\/p>\n
Marvell issued the warrant on August 18, with the right to exercise it running until August 18, 2033. Of the total shares covered, 1,360,867 will vest in equal quarterly installments during the first year.<\/p>\n
The remaining shares will vest through 240 tranches. Each tranche becomes available for every $500 million in revenue Marvell receives from Google from custom products between the third quarter of fiscal 2027 and the end of fiscal 2033. The structure directly links Google’s potential gains as a Marvell shareholder to its purchasing commitments, with greater purchases of custom chips allowing Google to acquire more shares at the agreed price.<\/p>\n
The deal adds another competitor to the market for custom AI chips. Broadcom signed a long-term agreement with Google in April to develop and supply future generations of custom AI chips and components for next-generation AI racks through 2031.<\/p>\n
Analysts cited in the source view Marvell’s entry as a way for Google to diversify its supply chain rather than replace Broadcom. The arrangement also comes as Google seeks alternatives to Nvidia’s general-purpose GPUs to meet rising demand.<\/p>\n
Marvell previously reached a similar warrant agreement with Amazon Web Services in December 2024. That deal covered 4.18 million shares, making it considerably smaller than the transaction with Google. Marvell now has custom chip relationships with three of the largest cloud infrastructure providers.<\/p>\n
The agreement comes ahead of Marvell’s earnings report scheduled for August 27. Stifel reiterated a buy rating and a $350 price target, expecting Marvell to exceed its $2.70 billion revenue estimate for the July quarter.<\/p>\n
TD Cowen raised its price target to $225 from $200 on August 17, citing strong market share in optical digital signal processors. Options markets were already pricing in implied moves of about 14% around the earnings announcement, pointing to expectations of high volatility.<\/p>\n","protected":false},"excerpt":{"rendered":"
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