Marvell signs custom chip deal with Google, Broadcom shares under pressure

Published Aug 25, 10:40 PM UTC

Marvell Technology has signed a commercial agreement with Google to develop custom semiconductor products, including AI inference accelerators, storage controllers, and network interface controllers tied to Google's TPU ecosystem. The deal includes warrants allowing Google to purchase up to 59 million Marvell shares, potentially giving Google over 6% ownership and signaling a massive long-term revenue opportunity. This development has contributed to a more than 10% decline in Broadcom's stock price from recent highs, as Broadcom has been Google's primary custom AI chip partner. Broadcom's upcoming earnings report, particularly its fiscal year 2027 AI semiconductor guidance, is seen as critical to restoring investor confidence. Despite the threat, Broadcom retains a TPU and networking deal with Google through 2031.