Google Partners with Marvell to Develop AI Chips
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy GOOG?
Source: seekingalpha
- Chip Development Partnership: Google is in discussions with Marvell Technology to develop two new chips aimed at enhancing the efficiency of running artificial intelligence models, showcasing Google's ongoing investment and technological innovation in the AI sector.
- Memory Processing Unit: One of the chips will be a memory processing unit designed to work alongside Google's tensor processing unit (TPU), with plans to complete the design and move into test production as early as next year, further strengthening Google's competitive edge in cloud services.
- Market Competition Strategy: Google aims to position its TPUs as an alternative to Nvidia's widely used graphics processing units, seeking to increase its market share in the AI chip sector, with TPU sales becoming a significant driver of Google Cloud's growth.
- Commercial Return Expectations: As Google ramps up its AI investments, the growth in TPU sales is expected to validate the commercial returns of its heavy spending, further solidifying its position in the cloud computing market.
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Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 332.770
Low
255.00
Averages
336.08
High
400.00
Current: 332.770
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Surge: Marvell's shares jumped nearly 8% in pre-market trading on Monday, trending on Stocktwits, indicating strong market optimism regarding its partnership with Google, which is expected to drive future performance growth.
- Custom Chip Development: Google is reportedly in discussions with Marvell to develop two custom chips aimed at improving AI model operation efficiency, including a memory-focused processor and a next-generation TPU, enhancing Google's competitiveness in AI inference workloads.
- Growing Market Demand: The increasing need for inference chips in AI applications has led to a 41% surge in Marvell's stock price in April, reflecting investor confidence in its growth potential, particularly in light of the collaboration with Google.
- Retail Sentiment Bullish: Retail sentiment for MRVL on Stocktwits remains 'bullish', with message volume rising 85% in the last 24 hours, indicating positive investor expectations for Marvell's future performance, despite some market uncertainties.
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- Memory Processing Unit: One of the chips will be a memory processing unit designed to work alongside Google's tensor processing unit (TPU), with plans to complete the design and move into test production as early as next year, further strengthening Google's competitive edge in cloud services.
- Market Competition Strategy: Google aims to position its TPUs as an alternative to Nvidia's widely used graphics processing units, seeking to increase its market share in the AI chip sector, with TPU sales becoming a significant driver of Google Cloud's growth.
- Commercial Return Expectations: As Google ramps up its AI investments, the growth in TPU sales is expected to validate the commercial returns of its heavy spending, further solidifying its position in the cloud computing market.
See More
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- Stock Surge: Marvell's shares jumped nearly 8% in pre-market trading on Monday, trending on Stocktwits, indicating strong market optimism regarding its partnership with Google, which is expected to drive future performance growth.
- Custom Chip Development: Google is reportedly in discussions with Marvell to develop two custom chips aimed at improving AI model operation efficiency, including a memory-focused processor and a next-generation TPU, enhancing Google's competitiveness in AI inference workloads.
- Growing Market Demand: The increasing need for inference chips in AI applications has led to a 41% surge in Marvell's stock price in April, reflecting investor confidence in its growth potential, particularly in light of the collaboration with Google.
- Retail Sentiment Bullish: Retail sentiment for MRVL on Stocktwits remains 'bullish', with message volume rising 85% in the last 24 hours, indicating positive investor expectations for Marvell's future performance, despite some market uncertainties.
See More
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- AI Infrastructure Costs: This year, spending on GPUs and CPUs is expected to reach hundreds of billions of dollars, causing investor anxiety regarding tech stocks, particularly amid increasing market volatility.
- Microsoft Financial Pressure: Microsoft reported capital expenditures of $37.5 billion in the latest quarter, leading to a 12% decline in stock price year-to-date, despite its core productivity software business remaining robust with nearly 345 million paid Microsoft 365 subscribers.
- Alphabet Market Reaction: Alphabet's announcement of a $185 billion investment in cloud infrastructure this year resulted in a nearly 10% stock drop in March, yet its advertising revenue reached $82.2 billion in Q4, indicating the stability of its core business.
- Palantir Revenue Growth: Although Palantir's stock fell 20% in 2026, its revenue surged 70% year-over-year to $1.4 billion, and it secured $4.26 billion in total contract value this quarter, highlighting its strong market potential and business growth foundation.
See More
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- Microsoft Stock Decline: Microsoft shares are down 12% year-to-date and nearly 22% from all-time highs, despite a robust core business with Microsoft 365 boasting nearly 345 million paid subscribers and a 17% revenue increase in Q2.
- Alphabet's Cloud Investment: Alphabet plans to spend $185 billion on cloud infrastructure this year, leading to a nearly 10% stock drop in March; however, its advertising revenue reached $82.2 billion in Q4, accounting for 72% of total revenue, indicating strong core business health.
- Palantir's Contract Value Growth: Palantir's total contract value reached $4.26 billion this quarter, with a 70% revenue increase to $1.4 billion year-over-year, despite a 20% stock decline, showcasing strong market demand.
- Overreaction in the Market: The author believes that despite short-term volatility in tech stocks, the market often overreacts, presenting opportunities for long-term investors to capitalize on potential recoveries without panicking.
See More
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- Chip Development Partnership: Google is in discussions with Marvell Technology to develop two new chips aimed at enhancing the efficiency of running artificial intelligence models, showcasing Google's ongoing investment and technological innovation in the AI sector.
- Memory Processing Unit: One of the chips will be a memory processing unit designed to work alongside Google's tensor processing unit (TPU), with plans to complete the design and move into test production as early as next year, further strengthening Google's competitive edge in cloud services.
- Market Competition Strategy: Google aims to position its TPUs as an alternative to Nvidia's widely used graphics processing units, seeking to increase its market share in the AI chip sector, with TPU sales becoming a significant driver of Google Cloud's growth.
- Commercial Return Expectations: As Google ramps up its AI investments, the growth in TPU sales is expected to validate the commercial returns of its heavy spending, further solidifying its position in the cloud computing market.
See More
GOOGLE DISCUSSES PARTNERSHIP WITH MARVELL TO DEVELOP NEW AI INFERENCE CHIPS
Google and Marvel Collaboration: Google is in discussions with Marvel to develop new AI chips aimed at enhancing inference capabilities.
Marvel Technology Stock Surge: Marvel Technology's stock saw a 9% increase in after-hours trading, defying market trends.
See More
SpaceX IPO Expected to Be Largest in History
- Record IPO Size: SpaceX is aiming to raise up to $75 billion in its upcoming IPO, with a staggering valuation of $2 trillion, positioning it as the largest IPO ever and significantly enhancing its market stature.
- Clear Use of Funds: The proceeds from the IPO will be directed towards expanding the Starlink satellite network and high-speed internet services, as well as funding rocket development and AI initiatives, indicating the company's commitment to future technological advancements.
- Google's Investment Returns: Google's stake in SpaceX could be worth up to $100 billion post-IPO, reflecting the success of its early investment, while changes in this ownership percentage may influence its overall investment strategy.
- Cloud Business Growth: Google's cloud segment saw a 48% revenue increase in Q4, reaching $17.7 billion, showcasing its robust performance amid soaring demand for AI infrastructure, further solidifying Google's leadership in the market.
See More
