Marvell Is Partnering With Google to Create Custom Chips. How to Play MRVL Stock Here.

Alphabet's Google has teamed up with custom chipmaker Marvell Technology to create specialized chips. Custom chips are more affordable than GPUs but have limited flexibility. Matt Bryson of Wedbush Securities believes this is advantageous for companies with chip design expertise. Bryson stated that this news and speculation suggests that companies with custom silicon design capabilities and IP blocks are in an advantageous position, and it's not a zero-sum game.

QQQ is currently in a negative gamma regime, but a put wall and Fibonacci support could be involved. IBM recently achieved a new quantum computing milestone. Alibaba has diluted shareholders for AI, with its insiders buying shares. Marvell has partnered with Google for custom silicon programs that include AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute.

The deal includes a warrant for Marvell to purchase up to 58.97 million shares of Google at $206.58 per share. Marvell is a leading AI infrastructure company focused on data-center connectivity, custom silicon, optical interconnects, switching, storage, and AI infrastructure. The partnership with Google has been ongoing, with rumors surfacing in May.

Marvell remains a strong competitor to Broadcom in the ASIC space and has expanded its connectivity ecosystem to work seamlessly with Nvidia's infrastructure. Marvell's fiscal Q1 2027 results showed a 28% growth in net revenues to $2.42 billion, with data center revenues making up 76% of the total. Gross margins improved by 200 basis points to 52.1%, and earnings grew by 29% to $0.80 per share.

While Marvell's stock is overvalued compared to sector medians, it has a Strong Buy consensus rating with a mean target price of $275.47.