Marvell Technology stock surged 8% after the company granted Alphabet’s Google a warrant to purchase up to 58.97 million shares at $206.58 apiece, worth approximately $12.2 billion if fully exercised, according to a regulatory filing released Wednesday. The warrant is tied to custom chip revenue targets through fiscal 2033 and could generate roughly $120 billion in total revenue for Marvell if Google hits those milestones, marking a major expansion of their partnership on artificial intelligence chips.
The deal covers a broad range of technologies used with Google’s tensor processing units, including processors that run AI models, systems that manage data storage, and hardware that moves information across networks. If fully exercised, the warrant would make Google Marvell’s fifth-largest investor, representing approximately 6.7% of Marvell’s outstanding shares.
The agreement reflects the intensifying competition among technology giants to secure reliable supplies of custom chips tailored to their specific AI infrastructure needs. Companies like Google seek alternatives to Nvidia’s expensive graphics processors and technologies better suited for inference—the process of running trained AI models in production environments.
A Growing Pattern in AI Supply Deals
Marvell’s warrant arrangement with Google echoes a similar structure that emerged in the AI supply chain earlier this year. In October 2025, Advanced Micro Devices struck a comparable deal with OpenAI, agreeing to supply the ChatGPT maker with AI chips worth tens of billions in annual revenue while giving OpenAI the option to buy a stake of up to roughly 10% in AMD, according to Reuters. Like the Marvell-Google agreement, AMD’s warrant with OpenAI tied vesting to purchasing targets, aligning the chipmaker’s incentives with its customer’s long-term success.
Morningstar analyst William Kerwin characterized the Marvell-Google deal as “a big win for Marvell,” though he noted the arrangement represents expansion of Google’s supplier base rather than displacement of its previous main partner, Broadcom, which fell more than 5% in the market reaction to the news.
The deal arrives amid a broader reshaping of Google’s AI strategy. The company recently overhauled its AI division, shifting power toward executives with closer ties to Google Cloud—a business unit where custom chips and AI infrastructure are increasingly central to competitive advantage. Marvell’s stock has already climbed significantly in 2026, benefiting from sustained demand for AI-optimized semiconductors across the industry. The company is scheduled to report fiscal Q2 2027 earnings on August 27, 2026, providing investors with another near-term catalyst to assess the impact of this expanded partnership.
Sources
- Reuters — core deal structure, warrant terms, revenue potential through 2033, analyst commentary from William Kerwin (Morningstar), competitive context with Broadcom, precedent with AMD-OpenAI deal
- Yahoo Finance — stock surge percentage (8.2%), warrant share count and exercise price
- CNBC — deal announcement, stock movement, custom chip partnership scope
- MarketWatch — warrant issuance and stock rally confirmation
- Quartz — warrant vesting tied to purchasing targets through fiscal 2033
