Alphabet (GOOG +1.44%) (GOOGL +1.71%) continues to solidify its position as the second-largest company globally, trailing only Nvidia. Central to this stature is Alphabet’s dominance in the search engine market, which has significantly contributed to its growth. However, the tech conglomerate is making strides to diversify its portfolio beyond its core advertising business, venturing into sectors such as autonomous vehicles, cloud services, smartphones, and artificial intelligence (AI). Recent developments suggest that Alphabet is also increasingly focused on the semiconductor industry.
Recent in-house chip development initiatives from Google’s division have yielded notable results in recent months. Originally designed to support the company’s own cloud operations, Alphabet’s Tensor Processing Units (TPUs) are now being utilized by external partners, including Anthropic and, reportedly, Meta Platforms for AI workload management. This strategic expansion highlights Google’s intent to further enhance its capabilities in AI chip technology.
In this context, a new report indicates that Google is considering a partnership with chip designer Marvell Technology (MRVL 0.79%) to further its AI chip development objectives. This news is particularly promising for Marvell, whose shares have soared by an impressive 95% in 2026 and 227% over the past year, reflecting strong investor confidence.
Historically, Google has collaborated with Marvell’s competitor, Broadcom, to co-design its TPUs. However, it appears that Google is now looking to diversify its supply chain. Tech-focused publication The Information has reported that Google is in negotiations with Marvell to co-develop new custom AI chips. One of the proposed chips is a TPU specifically designed for running AI models, while the other is intended to enhance memory processing capabilities to support Google’s TPUs.
While there has been no official confirmation from either Google or Marvell regarding these negotiations, comments from Marvell’s management during their March earnings call suggest a possibility of designing chips for Google. Management noted that its Structera memory controller chip has been featured in a white paper by a leading hyperscaler, aimed at improving AI model performance through its near-memory processing capacity. This capability effectively positions memory chips closer to AI accelerators, enhancing bandwidth and performance.
Moreover, Marvell’s management indicated that the company has been experiencing an “unprecedented level of activity” across various new engagements, as hyperscalers ramp up custom chip development. Marvell claims to maintain strong relationships with the four major hyperscalers in the U.S., which includes Google. This positioning could be advantageous as Marvell seeks to expand its footprint in the custom silicon market, where it currently holds a small share, estimated at under 5% in 2023, with goals to increase this figure to 20% by 2028.
A partnership with Google could significantly bolster Marvell’s growth trajectory. The company anticipates that its data center market share—including custom processors, switches, interconnects, and storage—could reach 20% in the coming years. This shift could result in nearly $19 billion in revenue for Marvell’s data center business by 2028, a notable increase from its fiscal 2026 revenue of $8.2 billion, which grew by 42% year-over-year.
Importantly, the growth potential of Google’s TPU business could open new avenues for Marvell, particularly if Alphabet successfully markets its in-house chips to third-party customers. Analysts suggest that Marvell’s revenue trajectory could exceed Wall Street’s expectations in the near future, driven by strong demand for AI-related technologies.
Even if Marvell’s revenue aligns with consensus expectations and hits $19 billion by fiscal 2029, the company’s market capitalization could rise to $190 billion, based on a projected price-to-sales ratio of 10, which is lower than its current ratio of 15. Nonetheless, the stock could yield even greater returns if the company surpasses growth forecasts, attracting a premium valuation from the market.
As Alphabet moves to reinforce its capabilities in the semiconductor space and expand its partnerships, interest in Marvell’s stock is likely to grow. Observers may want to consider investing in Marvell ahead of potential upward momentum, particularly following its significant gains thus far in 2026.
See also
Tesseract Launches Site Manager and PRISM Vision Badge for Job Site Clarity
Affordable Android Smartwatches That Offer Great Value and Features
Russia”s AIDOL Robot Stumbles During Debut in Moscow
AI Technology Revolutionizes Meat Processing at Cargill Slaughterhouse
Seagate Unveils Exos 4U100: 3.2PB AI-Ready Storage with Advanced HAMR Tech
