Tech giant Google (GOOGL) is giving chipmaker Marvell (MRVL) a bigger role in its AI-chip plans just as OpenAI is giving chip rival Broadcom (AVGO) a new way to prove its custom-silicon abilities. As a result, Marvell now has a clear path to win more business from Google, while Broadcom is showing that its OpenAI partnership could become an important growth driver. Interestingly, though, Wall Street still prefers Broadcom when it comes to potential upside.
Marvell Technology
Beginning with Marvell, its biggest new catalyst is Google. In fact, the companies expanded their work together in custom AI chips and networking technology. As part of the agreement, Google received a warrant that could allow it to buy as many as 58.97 million Marvell shares at $206.58 each. Most of those shares depend on Google reaching certain purchase levels through Fiscal Year 2033.
Reuters reported that the arrangement could support up to $120 billion in Marvell revenue if Google reaches all of the required purchase thresholds. Unsurprisingly, investors reacted quickly. Marvell shares rose nearly 8% after the announcement, while Broadcom fell more than 5%.
The Google deal also arrives as Marvell’s business is growing. Fiscal Q1 2027 revenue reached $2.418 billion, up 28% from a year earlier. Still, there are risks. Marvell depends heavily on a small number of large cloud customers. Google’s warrant could also dilute existing shareholders if many of those shares eventually vest and are exercised.
