Marvell Jumps Nearly 6% on $12.2 Billion Google Chip Deal as UBS Lifts Target to $310
Updated
Updated · Yahoo Finance · Aug 20
Marvell Jumps Nearly 6% on $12.2 Billion Google Chip Deal as UBS Lifts Target to $310
3 articles · Updated · Yahoo Finance · Aug 20
Summary
Marvell shares rose nearly 6% Thursday, extending a two-day gain as investors reacted to its newly disclosed Google AI chip partnership and a wave of bullish analyst calls ahead of Aug. 27 earnings.
Google won rights to buy up to $12.2 billion of Marvell shares in exchange for chip purchases, with 1.4 million warrant shares vesting in year one and later tranches tied to $500 million buying increments.
UBS raised its price target to $310 from $300, Roth lifted its target to $350 from $275, and BMO started coverage at Outperform with a $250 target, all pointing to stronger prospects in AI infrastructure.
The deal centers on custom silicon and attach products for Google's TPU ecosystem, reinforcing a broader push by hyperscalers to design more of their own AI hardware.
Jefferies, which kept a Buy rating and $325 target, said Marvell's thesis has materially improved, citing reports Microsoft could re-engage with the company's custom silicon efforts.
Could Google's $12.2 billion stock deal with Marvell trigger a massive shakeup that permanently dethrones Broadcom in the custom AI chip race?
Will the unprecedented 240-tranche warrant structure quietly dilute Marvell's shareholder value despite the record-breaking revenue projections for late 2026?
Why are hyperscalers suddenly demanding equity stakes in their chip suppliers, and what does this mean for the future of AI hardware monopolies?