On April 20, Marvell Technology rose 3.16% after hours, trading at $152.10 per share, with trading volume of approximately $110 million. The move was driven by reports that Google parent Alphabet is in advanced discussions with Marvell to jointly develop two new AI chips aimed at boosting the efficiency of artificial intelligence models.
According to people familiar with the matter, one chip is a memory processing unit designed to work in tandem with Google's proprietary Tensor Processing Units (TPUs), while the other is a new-generation TPU specifically optimized for AI inference workloads. Marvell would serve as the design partner, similar to MediaTek's role in Google's latest Ironwood TPU project. The two companies aim to complete the memory processing unit design as early as next year before moving it into trial production. Negotiations have not yet resulted in a formal contract.
The news adds to a string of positive catalysts for Marvell, which also secured a $2 billion investment from NVIDIA in late March via the NVLink Fusion framework. Barclays analyst Tom O'Malley recently upgraded the stock to Overweight and raised his price target to $150. Wells Fargo noted that a finalized Google deal would represent a \"meaningful incremental positive\" for Marvell, highlighting its Structera CXL solution as a key competitive advantage.
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