Google Gets $12.2B Warrant in Marvell Custom AI Chip Deal, Broadcom Falls
Marvell Technology granted Alphabet (Google) a warrant to buy up to $12.18 billion in shares, tied to Google’s purchases of custom AI chips through fiscal 2033. The partnership covers AI inference accelerators, storage, and networking hardware for Google’s TPU ecosystem. Marvell shares surged over 11%, while Broadcom—Google’s longtime custom chip partner—fell up to 5%. The deal reflects Big Tech’s push to diversify custom silicon suppliers amid a planned $700 billion AI infrastructure spending surge.
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Alphabet Could Own 7% of Marvell — But Here’s What Google Has to Do to Get It
Marvell Technology has issued Alphabet (Google) a warrant for up to 58.97 million shares, worth approximately $12.2 billion and representing roughly 6.3% to 6.7% of Marvell. However, Google must earn these shares through future purchases of Marvell's custom silicon, with the warrant vesting in $500 million revenue increments through fiscal 2033. The deal aligns Google's equity reward directly with Marvell's revenue growth from their partnership. Marvell is expanding its role in Google's AI infrastructure across AI inference chips, storage controllers, networking hardware, and memory controllers. The company's existing design wins already project a path to over $2 billion in revenue by fiscal 2029.
Alphabet Could Own 7% of Marvell — But Here’s What Google Has to Do to Get It
Marvell Technology has issued Alphabet (Google) a warrant for up to 58.97 million shares, representing roughly 6.3% to 6.7% of the company and valued at about $12.2 billion. However, Google does not receive the shares upfront; they vest in $500 million increments tied to Google's future purchases of Marvell's custom silicon through fiscal 2033. This structure aligns equity rewards directly with Marvell's revenue from the partnership. Marvell is expanding its role in Google's AI infrastructure across AI inference chips, storage controllers, networking hardware, and memory controllers. The company already has design wins projecting over $2 billion in revenue by fiscal 2029. The deal reflects a shift in AI infrastructure spending from buying GPUs to designing custom chips and networking systems.
Google Gets Marvell Stock Warrants for Buying Marvell's AI Chips
Google (Alphabet) signed an agreement with Marvell Technology on July 29, 2026, covering AI inference accelerators, storage controllers, and other silicon built around Google's TPU chips. In a securities filing, Marvell disclosed it granted Google warrants for 58,970,907 shares (about 7% of the company) at $206.58 per share. Most shares vest as Google spends $500 million increments on covered products, with a smaller portion vesting over the first year regardless of purchases. Google controls the pace and has no obligation to spend. With Marvell stock near $243, the warrants are already worth about $2.1 billion above exercise cost. The structure is similar to AMD's October 2025 deal with OpenAI, where AMD issued warrants for up to 160 million shares. The cost falls on Marvell's existing shareholders through dilution. Google continues working with Broadcom for TPU designs through 2031.
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Marvell Sinks 6% as Google Warrant Dilution Overtakes Deal Rally; Broadcom Ticks Up
Marvell Technology stock fell 6% on Friday as investor focus shifted from the revenue potential of a new deal with Alphabet's Google to the dilutive impact of a warrant granted to Google. The warrant allows Google to buy up to 59 million Marvell shares at $206.58, below the current trading price, meaning future appreciation is partially promised to the customer. This dilution concern outweighed the initial deal rally. In contrast, Broadcom, a direct competitor and incumbent supplier for Google's TPU, saw its stock rise 1%, attributed to its lower forward P/E ratio of 20x versus Marvell's 58x, leaving less room for repricing. The broader iShares Semiconductor ETF dipped only 0.8%, confirming the selloff is a single-name event. Marvell's fundamentals remain strong with Q1 fiscal 2027 revenue up 27.6% year-over-year, but the market is now pricing in the cost of the partnership.
Marvell's $12.2 Billion Google Deal Changes the Bull Case for MRVL Stock
Marvell Technology disclosed a commercial agreement with Alphabet (Google) on August 19, 2026, granting Google a warrant to buy up to 58.97 million Marvell shares at $206.58, totaling approximately $12.18 billion. This deal transforms Google from a customer into a significant aligned shareholder, validating Marvell's custom XPU (AI accelerator) strategy. Marvell's Q1 fiscal 2027 revenue grew 27.57% year-over-year to $2.418 billion, with data center revenue comprising 76% of the mix. Management forecasts fiscal 2027 revenue near $11.5 billion and fiscal 2028 revenue near $16.5 billion, with custom revenue expected to exceed $10 billion by fiscal 2029. The article notes risks including customer concentration and a GAAP net income decline due to a contingent consideration charge. It compares Marvell's high forward P/E (58x) to Broadcom (20x) and NVIDIA (26x), while presenting a bull-case price target of $354.10 and a bear-case of $218.24.
Broadcom Shareholders Should Be Paying Attention to What Just Happened With Marvell and Google
Marvell Technology has signed a commercial agreement with Alphabet (Google) to develop custom silicon that integrates with Google's TPU ecosystem. The deal includes a warrant for Google to buy up to 59 million Marvell shares at $206.58, representing roughly 7% dilution. Marvell's stock rose 7% on the news, while Broadcom fell 5% as the deal signals potential supplier diversification by Google away from Broadcom. The scope of the agreement is wider than expected, covering custom accelerators, storage, networking, and memory chips. Marvell CEO Matt Murphy guided custom revenue to more than double in fiscal 2028. The article suggests Broadcom shareholders should monitor this development as it may impact Broadcom's share of Google's custom chip business.
Broadcom Holds Steady as ARK Buys the Dip, Intel Slips, AMD Eases After Google’s Marvell Chip Deal
Google's $12.2 billion warrant deal with Marvell Technology reshapes the custom silicon landscape, sending Marvell shares up 10% and pressuring Broadcom. Broadcom shares steadied at $364.14 in early Thursday trading after Wednesday's selloff, while Intel and AMD each fell 1% in sympathy. The iShares Semiconductor ETF remained flat, indicating the selloff was Broadcom-specific rather than sector-wide. ARK Invest purchased 55,548 Broadcom shares on the dip, viewing the pullback as an entry point. Broadcom's CEO reiterated strong AI semiconductor revenue guidance of $16 billion for Q3 FY2026, up over 200% year on year, and a target of over $100 billion for fiscal 2027. The Google-Marvell deal leaves Broadcom's TPU commitments intact but resets expectations for future custom-silicon spending allocation.
Broadcom Steadies as ARK Buys Dip; Intel, AMD Slip After Google-Marvell Chip Deal
Broadcom shares stabilized in early Thursday trading after a Wednesday selloff triggered by Google's expanded custom-chip partnership with Marvell Technology, which included warrants to purchase up to $12.2 billion in Marvell stock. The iShares Semiconductor ETF remained flat, indicating the selloff was Broadcom-specific rather than sector-wide. Intel and AMD each fell 1% in sympathy. ARK Invest purchased 55,548 Broadcom shares on the dip, viewing the pullback as an entry point. Despite the deal, Broadcom's TPU commitments with Google remain intact, and CEO Hock Tan reiterated strong AI revenue guidance of $16 billion for Q3 FY2026, up over 200% year-on-year. The article notes Broadcom's year-to-date gain of 5% trails Marvell's 180% surge.
Marvell grants Google right to buy up to $12.2 billion in shares under custom chip deal
Marvell Technology has granted Google the right to purchase up to $12.2 billion worth of its shares, as disclosed in an SEC filing. The warrant allows Alphabet subsidiary Google to buy up to 58.97 million Marvell shares at $206.58 each, tied to Google's purchases of custom chips. The agreement, entered on July 29, 2026, covers custom silicon for Google's tensor processing units (TPUs), including AI inference accelerators, storage controllers, and network interface controllers. Shares vest in tranches linked to spending, with 1.36 million shares vesting quarterly in the first year and the remainder in 240 equal tranches triggered by $500 million in Custom Products revenue through fiscal 2033. The warrant is exercisable until August 18, 2033, and makes Google one of Marvell's largest shareholders. The deal follows Google's internal AI division changes focusing on custom chips and AI infrastructure.
Marvell Technology Expands Google AI Partnership with Custom Chip Deal and Warrant Agreement
Marvell Technology (MRVL) has expanded its partnership with Google to develop custom chips for AI infrastructure, including AI inference accelerators, storage, networking, and memory interface products tied to Google's Tensor Processing Unit ecosystem. As part of the agreement, Google received a warrant to buy up to 58.97 million Marvell shares at $206.58 each, potentially worth $12.18 billion if fully exercised. However, most warrants vest only as Marvell generates qualifying revenue from Google, with each $500 million in revenue unlocking a tranche. The news drove Marvell shares up over 11% in premarket trading, while Broadcom, Google's existing custom-chip partner, fell more than 2%. The deal strengthens Marvell's position against Broadcom and aligns with hyperscaler trends toward custom silicon. Marvell previously set a target of over $10 billion in custom-chip revenue by fiscal 2029 and expects data-center revenue to grow roughly 50% this year.
Broadcom Shares Fall as Google Partners with Marvell on Custom AI Chips
Broadcom shares fell 5% after Google signed a custom silicon deal with rival Marvell Technology, which also issued $12.2 billion in stock warrants to Google. The partnership covers memory, storage, and other components for Google's TPU ecosystem, raising fears that Google will diversify away from Broadcom, its longtime TPU co-designer. Despite the news, CNBC's Investing Club is not exiting Broadcom, noting a substantial existing commitment from Google through 2031. The broader chip sector also declined, with the iShares Semiconductor ETF down 2%, while Marvell shares jumped 7%. The article also notes broader market moves, including a Treasury buyback announcement and Fed minutes suggesting possible tightening if inflation persists.
Marvell Technology Expands Chip Deal With Google, Shares Rise
Marvell Technology (MRVL) shares rose on Wednesday after announcing an expanded multi-year commercial agreement with Alphabet's Google. Under the deal, Google received warrants to purchase up to 58.97 million Marvell shares valued at over $12 billion, with vesting tied directly to future custom chip purchases. The partnership embeds Marvell into Google's Tensor Processing Unit (TPU) ecosystem, focusing on AI inference accelerators, storage controllers, network interfaces, and near-memory compute architectures. The performance-linked structure gives Google financial incentive to scale custom silicon orders, validating Marvell as a primary ASIC partner alongside Broadcom in hyperscaler AI infrastructure. Despite today's gains, Marvell stock is down over 25% from its year-to-date high. Wall Street maintains a 'Strong Buy' consensus rating with a mean price target of about $268, indicating potential 15% upside. However, MRVL trades at about 76x forward earnings, making it more expensive than Nvidia at 26x.
Broadcom Stock Drops on Marvell's AI Chip Deal with Google
Shares of Broadcom (NASDAQ: AVGO) fell as much as 5.9% on Wednesday, August 19, 2026, following news that Marvell Technology (NASDAQ: MRVL) had struck a major deal with Broadcom's largest customer, Alphabet (Google). In a regulatory filing, Marvell revealed it will help Google develop custom semiconductors for AI, including inference accelerators and network controllers, and issued a warrant allowing Google to purchase up to 58.97 million shares at $206.58 per share. Investors feared this would cut into Broadcom's business with Google, despite Broadcom having signed a five-year AI chip deal with Alphabet in April 2026 to develop Google's TPUs and supply networking components. The article argues the sell-off is an overreaction, noting Broadcom CEO Hock Tan's projection of over $100 billion in AI chip revenue by 2027, compared to $64 billion total revenue in 2025. At 31 times forward earnings, the author considers Broadcom attractively priced.
Broadcom Stock Falls on Marvell-Google AI Chip Deal
Broadcom shares fell up to 5.9% on Wednesday after Marvell Technology announced a major deal with Alphabet (Google), Broadcom's largest customer. Marvell will develop custom AI semiconductors and related components for Google, issuing a warrant for nearly 59 million shares. Investors feared this could cut into Broadcom's business, though Broadcom had already signed a five-year AI chip deal with Google in April. Broadcom CEO Hock Tan stated the company has line of sight to over $100 billion in AI chip revenue by 2027, dwarfing its $64 billion total revenue in 2025. The article suggests the sell-off may be an overreaction by fair-weather investors.
Marvell Surges 6% on Google AI Chip Deal Allowing Up to $12.2 Billion Share Purchase
Marvell Technology shares jumped 6% after announcing a deal allowing Google to buy up to $12.2 billion in Marvell shares, or 58,970,907 shares at $206.58 each, through fiscal 2033. The expanded partnership focuses on custom AI chips, including products that attach to Google's tensor processing unit (TPU) ecosystem, such as AI inference accelerators, storage, and network interface controllers. This move is part of a broader trend among tech giants like Amazon, Meta, and Microsoft to develop custom silicon to reduce reliance on Nvidia. Google has historically worked with Broadcom on custom chips, and Broadcom's stock fell about 5% on the news.
Alphabet Could Own 7% of Marvell — But Here’s What Google Has to Do to Get It
Marvell Technology has issued Alphabet (Google) a warrant for up to 58.97 million shares, representing roughly 6.3% to 6.7% of the company and valued at about $12.2 billion. However, Google does not receive the shares upfront. The warrant vests in $500 million revenue increments tied to Google's future purchases of Marvell's custom silicon through fiscal 2033. This structure aligns Google's equity reward directly with Marvell's revenue growth from the partnership. The companies are collaborating across AI inference chips, storage controllers, networking hardware, memory controllers, and near-memory compute. Marvell's existing networking and CXL memory design wins already project a path to over $2 billion in revenue by fiscal 2029. The deal expands Marvell's role in Google's AI infrastructure as hyperscalers move toward designing custom chips and networking systems.
Alphabet Could Own 7% of Marvell — But Here’s What Google Has to Do to Get It
Marvell Technology has issued Alphabet (Google) a warrant for up to 58.97 million shares, worth approximately $12.2 billion and representing roughly 6.3% to 6.7% of Marvell. However, Google does not receive the shares upfront; they must be earned through future purchases of Marvell's custom silicon products through fiscal 2033. The warrant vests in $500 million revenue increments tied to qualifying custom-product revenue. This structure aligns Google's equity reward directly with Marvell's revenue growth from the partnership. Marvell is expanding its role in Google's AI infrastructure across AI inference chips, storage controllers, networking hardware, and memory controllers. The deal reflects a shift in AI infrastructure spending from buying GPUs to designing custom chips and networking systems.
Broadcom Falls 5% as Marvell Lands Google Custom Chip Deal, VMware and Financing Concerns Persist
Broadcom (AVGO) shares fell 5% to $359.66 after Marvell Technology (MRVL) secured a deal with Google to develop custom AI chips, threatening Broadcom's exclusive partnership with Google through 2031. Marvell issued Google a warrant worth about $12.18 billion tied to the deal, sending MRVL shares up 11%. Broadcom's stock has gained only 10% year-to-date, lagging behind peers AMD (up 126%), Marvell (up 155%), and NVIDIA (up 18%), despite Broadcom's AI semiconductor revenue growing 143% year-over-year to $10.8 billion in Q2 FY2026. Additional pressures include VMware security concerns and off-balance-sheet financing worries. The iShares Semiconductor ETF (SOXX) fell 0.7%.
Broadcom Falls 5% as Marvell Lands Google Custom Chip Deal, VMware and Financing Concerns Persist
Broadcom (AVGO) shares fell 5% in early trading after Marvell Technology (MRVL) secured a deal with Google (GOOGL) to develop custom AI chips, threatening Broadcom's exclusive partnership with Google through 2031. Marvell issued Google a warrant worth about $12.18 billion tied to the deal, sending MRVL shares up 11%. Broadcom's stock has gained only 10% year-to-date, lagging behind peers like AMD (up 126%) and Marvell (up 155%), despite reporting 143% growth in AI semiconductor revenue. Additional pressures include ongoing VMware security concerns and off-balance-sheet financing worries. The iShares Semiconductor ETF (SOXX) was down 0.7%.
Marvell Technology Surges 13% on $12.2 Billion Google Warrant; Broadcom Falls 3%
Marvell Technology shares jumped 13% in early trading after disclosing a $12.18 billion warrant issued to Alphabet's Google as part of a broader deal to develop custom AI chips. The move signals a supplier shift away from Broadcom, which fell 3% as the incumbent TPU provider. Alphabet shares were unchanged, indicating the market views this as a supplier reshuffle rather than a strategic pivot. Adjacent connectivity suppliers Astera Labs and Credo Technology saw modest gains of 1% and 3% respectively, benefiting from the custom silicon ramp. The article highlights the competitive dynamics in Google's custom AI chip roadmap, where Marvell is gaining share on a marquee hyperscaler program.