Marvell stock jumps 10% on Google custom AI chip talks

What drove the overnight move

Marvell Technology Inc. shares jumped in overnight trading heading into Monday after fresh chatter of a deeper relationship with Google. The ticker also trended among the top five on Stocktwits, reflecting a quick surge in retail attention. Reports said Google is in discussions with Marvell to develop two chips designed to improve the efficiency of AI model operations. The story was published Sunday by The Information, citing two people with direct knowledge of the discussions.

The overnight move was described in two ways across the coverage: one data point pegged the jump at about 10%, while another said the shares rose nearly 8% in the same session. Either way, the move stood out against a broader semiconductor rally that has lifted many chip stocks early in April. The tone of trading suggested the market is increasingly rewarding suppliers tied to hyperscaler AI spending.

The report: two chips, including a next-generation TPU

The central claim is that Marvell could end up designing two chips for Google, including a next-generation TPU. The same reporting notes Google has previously purchased off-the-shelf data center chips from Marvell, and that the new discussions are about custom silicon work. Custom chip engagements matter because they can create longer product cycles, tighter integration, and more predictable volumes once designs move into production.

No timeline for an agreement or product launch was provided in the material shared. There were also no disclosed financial terms, unit volumes, or margin expectations tied to the discussions. What is confirmed is the direction of travel: Google is looking at efficiency improvements for AI model operations and is discussing chip development with Marvell.

Sector backdrop: semis rising sharply in April

The move in MRVL came as semiconductor stocks have climbed sharply so far in April, led by names such as Intel, AMD, and memory chip firms. Marvell has also participated in that momentum. The stock was described as having surged 41% this month, positioning it among the stronger performers in the group during the period.

This sector context matters because AI-related narratives have been lifting valuations across multiple parts of the supply chain, including custom ASIC designers, optical component suppliers, and connectivity vendors. The Philadelphia semiconductor index was also described as hitting record highs, reinforcing the broader risk-on tone in chips.

Analyst upgrade added fuel to the rally

Separately from the Google report, Marvell shares were also described as rising 4.79% in a regular session, closing at USD 119.93. That move was linked to an analyst action: Tom O'Malley upgraded Marvell to Overweight from Equalweight and raised the price target to USD 150 from USD 105. The stock’s market capitalization was cited at USD 104.87 billion following that move.

The upgrade thesis highlighted optical components, which are used for ultra-fast data transmission inside AI data centers. O'Malley’s analysis projected optical-networking sales could rise by up to 90% in 2026 and 2027. While those are projections rather than reported results, they help explain why investors reacted strongly to the note.

Marvell’s longer-term growth targets

In March, Marvell projected nearly 40% revenue growth in fiscal 2028 to around USD 15.0 billion. That was positioned as above the USD 12.92 billion analyst consensus estimate from LSEG. The company also nudged up its fiscal 2027 outlook, with commentary elsewhere in the provided text describing a path to approaching USD 11.0 billion in fiscal 2027 revenue, representing more than 30% year-over-year growth.

The market is treating these longer-range targets as an important signal because custom silicon programs and data center connectivity often require long planning cycles. When management expresses confidence in multi-year demand, it can shift expectations for both revenue scale and business mix.

Recent financial and operating metrics highlighted

The material includes several concrete operating datapoints from Marvell’s recent reporting. For fiscal 2026, Marvell posted full-year revenue of USD 8.195 billion and non-GAAP EPS of USD 2.84. In Q4 fiscal 2026, revenue was USD 2.219 billion and non-GAAP EPS was USD 0.80, slightly above a USD 0.79 consensus figure mentioned.

Guidance was a major driver of the March 6 move described in the text. Marvell projected Q1 fiscal 2027 revenue of about USD 2.4 billion, compared with a USD 2.28 billion consensus estimate. The data center segment was cited as generating USD 1.65 billion in Q4, representing 74.4% of total sales. AI data center revenues were described as exceeding USD 6.0 billion in fiscal 2026, growing 46% year-over-year, and the custom silicon (XPU) business was said to have doubled during the year.

Deals and partnerships: Nvidia investment and photonics push

Another key piece of context is Marvell’s strategic partnership with Nvidia. The text states Nvidia will invest USD 2.0 billion in Marvell, and that the companies plan to work together on AI data infrastructure. The partnership includes custom processors and networking technology designed to integrate with Nvidia’s AI computing platform.

Marvell and Nvidia also plan to co-develop silicon photonics, which uses light to transmit data. Separately, Marvell acquired Celestial AI for USD 3.25 billion in cash and stock in December, described as adding photonics connectivity capabilities. These items matter because optical interconnect and photonics are increasingly central to scaling AI clusters.

Snapshot table: the key numbers in one place

What investors are weighing: growth versus valuation signals

A separate rating snapshot dated April 20, 2026 cited a GF Score of 87, with Financial Strength at 7/10, Profitability at 5/10, and Growth at 10/10. The same section noted that while growth indicators look strong, profitability shows room for improvement. It also flagged a high P/E ratio and significant insider selling as reasons for caution, without providing specific figures.

Put together, the story around MRVL is being shaped by two forces at the same time: a pipeline of AI-linked opportunities, and heightened sensitivity to valuation and insider activity. For traders, the presence of multiple catalysts, including the Google discussions, analyst upgrades, and the Nvidia partnership, is helping explain the sharp, headline-driven moves.

Conclusion

Marvell’s sharp move reflects how quickly AI infrastructure narratives can reprice semiconductor names, especially when a hyperscaler custom chip program is in the mix. The confirmed facts are the reported Google discussions for two chips, recent analyst optimism on optics, and Marvell’s own multi-year revenue targets. Investors will now look for formal confirmation or additional details on Google-related engagements, and for the next earnings update to clarify how design wins and partnerships are flowing into revenue.