Marvell Shares Rally 6.3% on Google Talks for AI MPU and TPU
Marvell shares jumped 6.3% premarket after Google entered talks to co-develop a memory processing unit and a TPU for AI inference, targeting finalized design next year and test production thereafter. Analysts forecast Q1 FY27 revenue of $2.4B (+27%) and EPS of $0.80 (+28.3%).
1. Google Partnership on AI Chips
Google and Marvell are negotiating to jointly develop two AI-focused chips: a memory processing unit (MPU) to work alongside Google’s existing tensor processing unit (TPU) and a new TPU optimized for AI inference. The companies aim to finalize the MPU’s design by next year before advancing to test production phases.
2. Analyst Forecasts and Celestial AI Acquisition
Consensus estimates project Marvell’s Q1 FY27 revenue at $2.4 billion (up 27%) and EPS at $0.80 (up 28.3%), underpinned by accelerating optics solutions from the Celestial AI acquisition. High-speed optical data transfer products acquired from Celestial AI are expected to drive material revenue growth in the second half of FY28.
3. Stock Market Reaction
Marvell shares rose 6.3% in premarket trading following the announcement of the Google partnership, reflecting investor optimism about the chipmaker’s expanded role in AI infrastructure. The rally highlights confidence in Marvell’s technology roadmap and competitiveness against dominant GPU providers.