Marvell (MRVL) May Be Making Chips for Alphabet; Stock Jumps 8%

Quick overview

Marvell Technology (MRVL) could be developing new AI chips for Alphabet (GOOGL), and the news pushed MRVL stock 8.18% higher Wednesday evening.

Marvel stock is climbing after reports surfaced that the company may be working on several AI chips for Google, including an inference-optimized Tensor and a memory processing unit. The stock continued to climb on Thursday, adding another 2.60% to its value at the time of writing.

Now at $182 per share, MRVL futures are at an all-time high and are part of a wider tech rally sweeping the U.S. stock markets. The wider AI sector is elevated thanks to excellent performance from Nvidia (NVDA), Advanced Micro Devices (AMD), and many others in May. These stocks stand to climb even higher if the current trade talks between Chinese and American leaders this week go well.

Marvell Poised for Tremendous Growth

Since early February, Marvell stock has grown quickly, doubling in value and yet still bullish. The news that they may be partnering with Alphabet strengthens their growth prospects, and the company has an earnings report scheduled for May 27th. That upcoming earnings call could push their stock even higher, which means this is a great time for investors to jump in.

Despite Marvell stock standing at a record high, the upside is very promising. A couple of factors could hold the stock back, particularly change in the Iran conflict that put a squeeze on investors spending and then capital expenditure numbers that mean slim profit margins for Marvell.   

The good news for investors is that Marvell has spent sparingly on capital expenditures, especially in comparison to some of the competing tech businesses. Capex spending has become a sore spot for investors since late last year, and if Marvell can avoid that pitfall, they may have an incredible earnings call later this month.

Compared to other chip manufacturers, their $354 million in capex spending for fiscal 2026 is conservative. That does indicate a 24% increase from the previous year, and their spending could climb thanks to a partnership with Alphabet. Investors will be looking for an update on that news by the time their earnings call takes place, and they will want an update on capital expenditures as well. If Marvell can come through on both of those fronts and assuage fears that they will keep their profit margins wide, then there is no telling what the potential growth is for this stock.

Investment firms are upgrading their price targets for this stock. Bank of America has a target of $200 for MRVL for the next 12 months, which is considerably up from the previous $125 target. Goldman Sachs has been less bullish on this stock, moving their 12-month target from $100 to $125.  

ABOUT THE AUTHOR See More

Timothy St. John

Financial Writer - European & US Desks

Timothy St John is a seasoned financial analyst and writer, catering to the dynamic landscapes of the US and European markets. Boasting over a decade of extensive freelance writing experience, he has made significant contributions to reputable platforms such as Yahoo!Finance, business.com: Expert Business Advice, Tips, and Resources - Business.com, and numerous others. Timothy's expertise lies in in-depth research and comprehensive coverage of stock and cryptocurrency movements, coupled with a keen understanding of the economic factors influencing currency dynamics. Timothy majored in English at East Tennessee State University, and you can find him on LinkedIn.

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