Alphabet (GOOG, GOOGL) is expanding its influence in the semiconductor sector, reportedly negotiating with Marvell Technology (MRVL) to develop custom AI chips. This partnership aims to enhance Google’s Tensor Processing Units (TPUs) and memory processing units, which are crucial for AI workloads. Marvell’s stock has surged 95% in 2026 and 227% over the past year, reflecting investor optimism about its growing role in the custom chip market.

The collaboration could significantly boost Marvell’s market share in the custom silicon space, projected to rise from less than 5% in 2023 to 20% by 2028. With the data center market estimated to generate nearly $19 billion in revenue for Marvell by 2028, the partnership with Google could unlock substantial long-term growth opportunities, particularly as Google looks to monetize its in-house chip technology.

For market professionals, the takeaway is clear: investing in Marvell could yield strong returns as it positions itself as a key player in the AI chip landscape, especially with the backing of a major player like Google.

Source: fool.com