Marvell Technology (NASDAQ: MRVL) opened comfortably in “green” this morning after reports surfaced that it’s in active discussions to co-develop two new custom AI chips for Alphabet Inc.
The Wilmington-headquartered firm will reportedly help Google design both specialized memory processing unit (MPU) and an inference-optimized Tensor Processing Unit (TPU).
Marvell stock has been a lucrative investment amidst booming AI demand this year – currently up an exciting 100% versus its year-to-date low in early February.
Significance of Google news for Marvell stock
Investors are piling into Marvell stock on Apr. 20 primarily because the Google news suggests it’s finding success in challenging the dominance of rivals like Broadcom in the “high-stakes” custom ASIC market.
If MRVL is indeed picked to design a dedicated memory processor to sit alongside Google’s TPUs, it will contribute to addressing the “memory wall” – one of the most significant bottlenecks in AI performance.
Simply put, such an agreement will reinforce Marvell’s position as an indispensable “plumber” for the AI era, proving specialized architecture needed to run complex models like “Gemini” at scale and with lower latency.
Note that MRVL shares currently pay a small dividend yield as well, which makes them even more attractive to own in 2026.
What makes MRVL shares a buy in 2026
While Marvell shares are already trading at record levels, the bull case remains remarkably sturdy due to the company’s peerless operating leverage and strategic positioning.
In fiscal 2026, the Nasdaq-listed firm generated a record $8.195 billion in revenue on an exciting 81% year-on-year increase in adjusted earnings.
MRVL is currently trading at nearly 44x forward earnings, but the premium is supported by a solid pipeline of 18 active ASIC designs and recent high-profile wins, including a $2 billion integration deal with Nvidia.
As the industry shifts from training large models to inference, the actual running of AI applications, Marvell’s focus on power-efficient, custom silicon puts it in the sweet spot of rising capex.
With gross margins holding firm above 51% and a multi-year growth trajectory in data center sales, MRVL is no longer just a networking company; it’s a primary architect of the AI data center.
How to play Marvell at record levels?
In short, the Google news on Monday is far more than just a short-term reaction to a news headline. It represents a fundamental market re-rating of Marvell as a top-tier contender in the custom silicon landscape.
If MRVL does indeed secure a seat at the table with Google, it will reinforce that the company has the technical prowess to compete for the most sophisticated hardware projects on the planet.
As cloud giants continue to pivot away from general-purpose processors in favour of “tailor-made” AI accelerators to save on energy and costs, Marvell’s total addressable market is expanding at an exponential rate.
For investors, the combination of record-breaking financials, a diversifying customer base, and a dominant position in the high-growth inference market suggests that while MRVL stock is at a record high today, the AI-driven supercycle for it is likely only in the middle innings.
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