Google Gets Warrant for 58.97 Million Marvell Shares at $206.58 in Expanded AI Chip Deal

Marvell Technology filed an 8-K with the SEC on August 19, 2026, confirming a commercial agreement with Google to build custom semiconductor products across the TPU ecosystem. That includes AI inference accelerators, storage and network controllers, memory interfaces, and near-memory compute.

Attached to the deal: a warrant letting Google buy up to 58,970,907 Marvell shares at $206.58 each, according to the filing reported by TradingView. The warrant is exercisable until August 18, 2033.

Most of it isn't free money sitting there waiting to be exercised. A portion vests on a one-year time-based schedule, but the bulk vests across 240 separate tranches, each tied to Google hitting $500 million in purchase revenue from Marvell through fiscal 2033, per the filing. Google only gets the full upside if it actually buys and deploys the chips at scale.

This is the same playbook Marvell ran with Amazon Web Services in December 2024, according to reporting from Crypto Briefing and KuCoin. That deal was far smaller: 4.18 million shares at $87.7706, with about 3.9 million vesting based on revenue through January 2030. The Google warrant is more than 14 times larger in share count, and its exercise price sits well above where the AWS warrant was set.

Marvell now has warrant-linked partnerships with two of the three biggest cloud infrastructure players in the world. It also supplies custom chips to Microsoft, putting it in relationships with all three hyperscalers. Only a handful of companies can design silicon at this level, which positions Marvell competitively in this business.

What triggered the rally

Marvell shares jumped 12.7% in pre-market trading, hitting $243.48, according to tradingpedia. That move followed confirmation of the binding agreement and built on momentum from analyst upgrades.

Stifel reaffirmed a Buy rating and $350 price target, telling clients it expects Marvell to beat its own $2.70 billion revenue forecast for the July quarter, implying about 11.7% sequential growth. Stifel pointed to Marvell's data center business, which made up 76% of revenue in the April quarter, as the driver, citing strength in optical interconnects and the XPU program. UBS kept its Buy rating too. TD Cowen raised its price target to $225 from $200 on August 17, citing Marvell's market share in optical digital signal processors.

Options traders are pricing in roughly a 14% implied move around Marvell's earnings report on August 27, according to tradingpedia, a sign the market expects this deal and the quarterly numbers to move the stock hard in either direction.

Even after the pre-market pop, Marvell stock sits below its 52-week high of $329.88.

The Broadcom angle and the timeline

Reports of Google and Marvell holding advanced talks to co-develop two new AI chip types first surfaced in mid-April 2026, according to Crypto Briefing and KuCoin. One chip is a memory processing unit meant to pair with Google's existing Tensor Processing Units. The other is a specialized TPU built for inference work. Marvell stock rose about 6% on that April news, while Broadcom shares fell, reflecting investor bets that Marvell was cutting into territory Broadcom has dominated in custom AI silicon.

The 8-K filed August 19, 2026 turns those April reports into a signed, binding commercial agreement with concrete financial terms attached.

One thing to watch

Marvell CEO Matthew Murphy sold approximately $1.77 million in company stock on August 17 under a pre-arranged 10b5-1 trading plan, according to tradingpedia. Scheduled sales under 10b5-1 plans are set up in advance and are not, by themselves, evidence of insider concern about the company's prospects. No source here suggests any irregularity in the timing or structure of that sale.

The warrant's value to Google is entirely contingent on Marvell's custom chips generating real purchase volume, tranche by tranche, up to fiscal 2033. Marvell's next earnings report, scheduled for August 27, will be the first real test of whether the data center and XPU revenue analysts are betting on actually shows up in the numbers.