Marvell Soars on $12B Google Deal, But Broadcom Takes a Hit
Marvell Technology (MRVL) shares surged over 13% on Wednesday morning after the company disclosed a commercial agreement with Google parent Alphabet (GOOG, GOOGL). The deal grants Google a warrant to purchase up to 58.97 million MRVL shares at $206.58 each, representing around 7% of Marvell's outstanding shares.
The agreement covers AI inference accelerators, storage controllers, networking, memory interfaces, and near-memory compute products tied to Google's TPU roadmap. The warrant is structured to vest largely around the success of the partnership rather than simply over time, with only 1.36 million shares covered by the warrant vesting through equal quarterly installments during the first year.
The remaining shares are divided into 240 equal tranches running from Marvell's third quarter of fiscal 2027 through fiscal 2033, with one tranche vesting for every $500 million in eligible custom-products revenue generated through Google. This means Google would need to drive significant business to Marvell before it receives most of the potential stake.
Meanwhile, rival Broadcom (AVGO) saw its shares slip nearly 3% in morning trade, with retail sentiment rising to 'extremely bullish' from 'bullish' territory over the past day.