What's happening
Marvell Technology is reportedly in talks with Google to develop two custom AI chips designed for inference tasks, according to multiple sources. The discussions focus on creating specialized processors that would accelerate AI results and potentially reduce Google's reliance on existing chip suppliers. Marvell shares jumped 5.8% to close at $147.84 on April 20, 2026, with trading volume reaching 38.7 million shares, representing 87% above the three-month average of 20.7 million shares. The stock surge added over $6 billion to Marvell's market capitalization, which reached $122.15 billion.
Why it matters for markets
The potential Google partnership underscores the growing competition in AI hardware as tech giants seek alternatives to dominant suppliers. Marvell has gained approximately 84% year-to-date as of April 20, 2026, reflecting investor confidence in the company's AI chip capabilities. The chipmaker forecasts revenue approaching $15 billion in fiscal 2028, while currently trading at 33.35 times forward 12-month earnings estimates. Tech companies are expected to spend at least $630 billion on AI infrastructure in 2026, creating substantial opportunities for chip suppliers beyond traditional market leaders. Google's plans for nearly two million new memory processing units highlight the scale of demand driving these partnerships.
Sectors and assets to watch
Semiconductor companies developing AI-specific chips face intensifying competition as hyperscalers diversify their supplier base. Nvidia, which invested $2 billion in Marvell on March 31, 2026, maintains its leadership position with a $4.86 trillion market capitalization but faces growing challenges from custom chip initiatives. Broadcom and other established chip designers also compete for custom AI processor contracts with major cloud providers. Investment Director Russ Mould at AJ Bell noted that rivals will want to grab market share from the apparent growth on offer, while customers seek to diversify supply sources to spread technological and supply chain risk.
What to watch next
Monitor announcements of formal agreements between Marvell and Google, including specific chip specifications, production timelines, and revenue projections. Track whether other hyperscalers accelerate their own custom chip partnerships and how Nvidia responds to increasing competitive pressure in AI hardware. Watch for Marvell's quarterly earnings guidance updates that may reflect potential Google contract contributions to its fiscal 2028 revenue target of $15 billion.