Marvell Surges on $12B Warrant with Alphabet's Google, Broadcom Falls

Marvell Technology's stock surged 13% to $243.66 on Wednesday after announcing a warrant issued to Alphabet's Google worth around $12.18 billion, tied to a broader deal for custom AI chips.

The agreement is part of Marvell's efforts to develop custom chips for Google, including AI inference accelerators, storage, networking, and memory interface controllers.

Broadcom shares fell 3% due to the development, as it had been the incumbent supplier for multiple generations of tensor processing units (TPUs) for Google.