Alphabet's Google Could Supercharge This Artificial Intelligence (AI) Stock

The Big Picture: Key Points

  • Alphabet's Google is gaining traction in the AI chip market with its Tensor Processing Units (TPUs), which could benefit Marvell Technology.
  • Marvell Technology designs custom AI processors for major hyperscalers and has reportedly been tapped by Google to design a couple of chips.
  • The potential partnership could fuel stronger growth at Marvell, with its stock already jumping 78% in 2026.

Alphabet's Google is currently the second-largest company in the world, and its dominance in the search engine market has played a key role in helping it reach that position. However, the impressive thing about Alphabet is that it has consistently aimed to expand its footprint beyond the advertising business. From autonomous cars to cloud computing, smartphones, and Artificial Intelligence (AI) models, it's now in a broad array of tech businesses, and the semiconductor business is becoming another area where it's aiming to make a dent.

The in-house chip development efforts of its Google division have been paying off nicely in recent months. Originally intended for running the company's own workloads in the cloud, its Tensor Processing Units (TPUs) are now being deployed by Anthropic, while Meta Platforms is also reportedly going to deploy these chips to handle AI workloads. Not surprisingly, Google is looking to push the envelope further in the AI chip department. A new report suggests that chip designer Marvell Technology could become Google's new partner in its AI chip development efforts.

The Core Issue in Plain English

Marvell Technology's custom AI processor business could get a big shot in the arm if the company partners with Google. Marvell has historically played second fiddle to Broadcom in the custom AI processor market, but a potential partnership with Google could help it gain more traction. The company estimates that its overall data center market share, including custom processors, switches, interconnect, and storage, could jump to 20% in the next couple of years.

Google's growing influence in the AI chip market could fuel stronger growth at Marvell. The company's stock has already jumped nicely in 2026, and investors can expect more upside as it ramps up the output of custom AI processors for its customers. Marvell's fiscal 2027 began in February this year, so it won't be surprising to see the company indeed designing chips for Google based on the timeline reported by The Information.

Why It Is Hitting the Headlines Now

The report by The Information suggests that Google is reportedly in negotiations with Marvell to develop a couple of new custom AI chips. While one will be a TPU meant to run AI models, the other is reportedly going to be a memory processing unit that will support Google's TPUs. The report further states that Google and Marvell plan to complete the design of the memory processing unit next year and send it to test production.

Comments by Marvell management on the company's March earnings call suggest it could indeed be designing chips for Google. The company noted that its Structera memory controller chip has been cited in a white paper by "a leading hyperscaler on next-generation LLM inference architectures" to improve the performance of AI models thanks to its near-memory processing capability. Marvell management remarked that the company is "seeing an unprecedented level of activity across multiple new engagements as hyperscalers increase their cadence of custom chip development."

Marvell's custom AI processor business could get a big shot in the arm if the company partners with Google, and this could lead to stronger growth at Marvell.

What This Means for Your Daily Life, Rights, or Finances

The potential partnership between Google and Marvell Technology could have significant implications for the AI industry. As AI continues to play a larger role in our daily lives, the development of custom AI chips could lead to more efficient and effective AI models. This could have a range of applications, from Machine Learning to Generative AI.

For investors, the potential partnership could be a significant opportunity. Marvell's stock has already jumped 78% in 2026, and a partnership with Google could lead to even more growth. As the AI industry continues to evolve, it's likely that we'll see more companies like Marvell Technology playing a key role in the development of custom AI chips.

FAQ: Everything You Need to Know

  • Q: What is the potential partnership between Google and Marvell Technology? A: The potential partnership is for the development of custom AI chips, with Marvell designing a couple of new chips for Google.
  • Q: How could the partnership benefit Marvell Technology? A: The partnership could fuel stronger growth at Marvell, with its stock already jumping 78% in 2026.
  • Q: What are the implications of the partnership for the AI industry? A: The partnership could lead to more efficient and effective AI models, with a range of applications from Machine Learning to Generative AI.
  • Q: How could the partnership affect investors? A: The partnership could be a significant opportunity for investors, with Marvell's stock already jumping 78% in 2026.