Marvell Stock Surges on Google AI Chip Warrant Deal

Marvell Technology shares surged over 11% in early trading on Wednesday, August 19, 2026, after the company disclosed a warrant allowing Alphabet's Google to purchase a stake worth approximately $12.18 billion, tied to a partnership to develop custom artificial intelligence chips. The announcement immediately pressured shares of Broadcom, Google's existing custom silicon partner, which fell more than 3%.

The deal, formalized in a regulatory filing on August 19, gives Google the right to buy up to 58.97 million Marvell shares at a strike price of $206.58 each. Most of the warrant shares vest based on revenue targets, specifically when Google generates $500 million in purchases of custom products developed with Marvell. About 1.36 million shares will vest in quarterly installments during the first year. The partnership covers the development of AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing technologies designed for Google's Tensor Processing Unit ecosystem.

Marvell stock climbed to $240.26, while Broadcom shares dropped to $369.13. Alphabet's stock was essentially unchanged. The market...