Marvell-Google AI chip supply deal
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Marvell stock soars 241% in a year
Lisa Su became CEO of AMD in October 2014.
Amazon announced a new partnership with Qualcomm on Tuesday.
Matt Murphy described Marvell as the Switzerland of the AI chip market.
Marvell shares tumble 8 percent despite revenue growth
Marvell's previous fiscal 2028 revenue forecast was $16.5 billion.
Goldman Sachs remains neutral on Marvell.
The Google agreement covers products that work with Google's TPU systems, including AI inference chips, storage controllers and network interface controllers.
“We believe investor expectations were elevated heading into the quarter based on robust spending at key customers, as well as the previously disclosed Google relationship,”
Marvell-Google AI chip deal with equity purchase option
Marvell Technology disclosed in a securities filing a deal allowing Google to buy up to $12.2 billion in Marvell shares
The stake is tied to purchasing targets through Marvell's 2033 fiscal year
Google, Amazon, Meta and Microsoft have been developing custom silicon chips for AI workloads as cheaper substitutes to Nvidia chips
“It's a commitment that is very substantial in dollars – a very, very substantial amount of dollars. Now we also accept the fact that, while we like to win every design in that program, we also accept the fact that given the growth of development and consumption of AI compute even by our partner, Google, that we fully expect that there will be some diversity of sources for them. But our commitment from them is a very substantial dollar amount.”
Marvell announces AI chip deal with Google worth up to $12.2 billion
Broadcom's stock fell about 5% on Wednesday.
The deal allows Google to purchase up to 58,970,907 shares at $206.58 apiece.
Marvell said the expanded agreement will include products that attach to the TPU ecosystem, such as AI inference accelerators and storage and network interface controllers.
“It's a commitment that is very substantial in dollars – a very, very substantial amount of dollars. Now we also accept the fact that, while we like to win every design in that program, we also accept the fact that given the growth of development and consumption of AI compute even by our partner, Google, that we fully expect that there will be some diversity of sources for them. But our commitment from them is a very substantial dollar amount.”