Google switches to Marvell for AI chips

What happened: On April 20, 2026, Marvell Technology's stock surged by around 5% after The Information reported that Alphabet Inc.'s Google is in talks with Marvell to create two AI chips. This news comes as Google is reportedly considering a switch from its current AI chip supplier, Broadcom. Marvell's stock hit a record high, with shares up over 76% year-to-date.

Market impact: The AI chip market is in focus, with Marvell Technology (MRVL) benefiting from potential new business with Google. Broadcom (AVGO), previously Google's AI chip supplier, saw its stock fall by 1.7% on the news. Investors are bullish on MRVL, with heavy and unusual call options activity indicating confidence in the stock's rise. Meanwhile, AVGO's stock may face pressure if Google finalizes the deal with Marvell.

What to watch next: First, Google's Q1 2027 earnings, scheduled for late July 2027, may provide more clarity on its AI chip strategy. Second, Marvell's Q3 2027 earnings, expected in late October 2027, will offer insights into the potential impact of the Google deal on its financials. Lastly, any updates or confirmations from Google or Marvell regarding the AI chip talks will be crucial in driving the narrative forward.