Alphabet gains right to purchase up to $12.18 billion in MRVL stock at $206.58 per share, aligning interests in AI chip strategy.
Marvell Technology granted Alphabet a warrant to buy up to 58,970,907 shares at $206.58 each, valuing the deal at approximately $12.18 billion. The agreement transforms Google from a customer to a potential top shareholder, reinforcing Marvell’s custom XPU strategy for AI and data center markets.
Marvell’s stock trades at a forward P/E of 58x, significantly higher than Broadcom’s 20x and NVIDIA’s 26x, reflecting its smaller revenue base and growth potential. Q1 fiscal 2027 revenue reached $2.418 billion, up 27.57% year over year, with Data Center revenue accounting for 76% of the mix at $1.8327 billion.
Shares of MRVL rose 9.3% over the past week and 21.71% in the past month, though they remain 22% below the 52-week high of $329.80. The warrant covers AI inference accelerators, storage controllers, and networking chips, signaling confidence in Marvell’s long-term AI silicon roadmap.