Marvell Gains Ground in AI Chip Race as Google Weighs Broadcom Alternative

Marvell Technology shares rose on Monday after reports that the company is talking with Alphabet’s Google about developing new artificial intelligence chips. This move could increase competition for Broadcom, which has been Google’s main processor partner for years.

A report from The Information, which cited sources familiar with the situation, said Google is considering working with Marvell to create new versions of its AI chip design. By early Monday, neither company had made a public statement. Marvell shares were up about 4% in early trading, while Broadcom shares fell around 1.7%.

Broadcom is currently the main developer of Google’s Tensor Processing Units, which are the company’s own AI accelerators. This partnership is not expected to change soon, as the two companies recently extended their agreement through 2031. However, if Google also works with Marvell, it could give Google more leverage when negotiating prices and contract terms with Broadcom.

Marvell and Broadcom both make application-specific integrated circuits, or ASICs. These processors are designed for specific, high-volume tasks, unlike Nvidia’s graphics processing units, which handle a wider range of jobs. ASICs are especially good for inference workloads, where AI models process data to produce results. Reports say Google is looking at Marvell for this purpose.

“There appears to be a diversification of engagements bringing additional ASIC suppliers into hyperscale roadmaps,” a Susquehanna analyst wrote in a research note on Monday, highlighting Marvell as a company that could benefit from this trend.

Marvell shares have almost tripled in the past year. Most of this growth is due to strong performance in its networking business, but analysts are also increasingly confident about Marvell’s long-term custom chip projects with Amazon Web Services and Microsoft.