Via barchart.com
A custom-chip agreement with Google, tied to $120 billion in revenue milestones, sent Marvell's stock up nearly 10% and has Wall Street rethinking the semiconductor landscape.
Marvell Technology signed a commercial agreement with Google on July 29, 2026, to develop custom silicon for data center and AI workloads, a partnership structured around warrants and revenue milestones that could collectively rewrite Marvell’s long-term trajectory.
Marvell’s stock climbed nearly 10% after the announcement, bringing its market capitalization to roughly $220 billion as of August 19-20, 2026.
What the deal actually involves #
The agreement covers a range of silicon products: AI inference accelerators, storage controllers, network interface controllers, and near-memory compute solutions. All of it is designed to slot into Google’s Tensor Processing Unit ecosystem.
Google received warrants to purchase up to 58.97 million Marvell shares at an exercise price of $206.58 per share. If Google exercises all those warrants, the total value sits at approximately $12.2 billion.
Those warrants vest based on revenue milestones structured around up to $120 billion in cumulative custom-product revenue for Marvell by fiscal 2033.
Why Nvidia’s CEO is paying attention #
Nvidia CEO Jensen Huang said in June 2026 that Marvell could become “the next trillion-dollar company.” Reaching $1 trillion in market cap would require Marvell to roughly quadruple its current valuation.
Revenue milestones tied to warrant vesting give investors a transparent roadmap: when Google exercises tranches of warrants, it signals that Marvell hit its numbers.
Broadcom feels the pressure #
Broadcom’s stock declined following Marvell’s announcement. Broadcom has its own deep relationship with Google around custom TPU silicon, and news that Google is formalizing and expanding a parallel relationship with Marvell raised questions about how Google is diversifying its AI chip supply chain.
The warrant structure gives Google a financial incentive to actually generate the revenue that vests those warrants, creating a mutually reinforcing commercial relationship in which Google is a stakeholder with a direct interest in Marvell’s revenue growth hitting the agreed milestones.
The warrants were executed on August 18, 2026, one day before the stock moved.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our