Key Takeaways
- Alphabet (Google) is expanding beyond advertising into semiconductors, leveraging its Tensor Processing Units (TPUs) for internal cloud workloads and now offering them to third‑party AI firms such as Anthropic and potentially Meta.
- Recent reports indicate Google is negotiating with Marvell Technology to co‑design a new TPU and a complementary memory‑processing unit, aiming to diversify its chip supply chain beyond its long‑time partner Broadcom.
- Marvell’s Structera memory controller has already been cited by a leading hyperscaler in a white paper on next‑generation LLM inference architectures, highlighting its relevance for AI acceleration.
- Marvell estimates its share of the custom AI processor market could rise from under 5 % in 2023 to 20 % by 2028, with total data‑center revenue approaching $19 billion if current projections hold.
- A successful Google‑Marvell partnership could unlock a long‑term growth runway for Marvell, potentially pushing its market‑cap toward $190 billion by fiscal 2029 even at a modest 10× sales multiple.
- Investors may benefit from entering Marvell before the market fully prices in the upside from hyperscaler‑driven custom chip demand.
Alphabet’s Broadening Semiconductor Ambitions
Alphabet, the parent of Google, has long used its dominance in search and advertising to fund expansive research across multiple technology fronts. While its ad business remains a cash cow, the company has deliberately diversified into autonomous vehicles, cloud computing, smartphones, and artificial intelligence. In recent years, the semiconductor arena has become another focal point, with Google’s in‑house Tensor Processing Units (TPUs) evolving from internal accelerators to products offered to external AI developers. As the article notes, “Originally intended for running the company’s own workloads in the cloud, its Tensor Processing Units (TPUs) are now being deployed by Anthropic, while Meta Platforms is also reportedly going to deploy these chips to handle AI workloads.” This shift underscores Google’s strategy to monetize its chip expertise beyond its own data‑center needs.
Google’s Search for New Chip Partners
Historically, Google has co‑designed its TPUs with Broadcom, a relationship that was recently reinforced to develop future custom AI chips. However, the tech giant appears to be looking to avoid over‑reliance on a single supplier. According to a report cited by The Information, “Google is reportedly in negotiations with Marvell to develop a couple of new custom AI chips.” One chip would be a TPU aimed at running AI models, while the other would be a memory‑processing unit designed to bolster the TPU’s performance. The report adds that the companies aim to finalize the memory unit’s design by next year and move it into test production, signalling a concrete timeline for collaboration.
Marvell’s Technical Fit for Google’s AI Roadmap
Marvell brings to the table a portfolio that aligns well with Google’s ambitions. The company highlighted its Structera memory controller chip, noting that it “has been cited in a white paper by ‘a leading hyperscaler on next-generation LLM inference architectures’ to improve the performance of AI models thanks to its near-memory processing capability.” This near‑memory approach reduces latency and boosts bandwidth—critical factors for large‑language‑model workloads that demand rapid data movement between compute and storage. Marvell’s management further observed an “unprecedented level of activity across multiple new engagements as hyperscalers increase their cadence of custom chip development,” indicating strong demand from the very players Google seeks to serve.
Market Opportunity for Marvell in Custom AI Silicon
Despite being a secondary player to Broadcom in the custom AI processor arena, Marvell sees substantial upside. The firm estimated it held less than 5 % of the custom silicon market in 2023 but aspires to capture 20 % by 2028. When factoring in its broader data‑center offerings—switches, interconnect, and storage—Marvell projects its overall data‑center market share could also reach 20 % in the same period. Based on an addressable market of $94 billion, that share would translate to roughly $19 billion in revenue by fiscal 2028, a notable jump from the $8.2 billion recorded in fiscal 2026 after a 42 % year‑over‑year increase.
Financial Upside and Valuation Implications
If Marvell’s revenue reaches the $19 billion mark by fiscal 2029 and the market applies a modest 10× sales multiple—a discount to its current price‑to‑sales ratio of ~15—the implied market capitalization would climb to about $190 billion. That represents a potential 38 % increase from today’s levels. The article suggests that stronger‑than‑expected growth, driven by wins such as a Google partnership, could prompt investors to award a premium valuation, thereby delivering even larger gains. Consequently, the piece advises that “it would make sense to buy Marvell before it heads higher following the solid gains it has already clocked this year.”
Strategic Implications for the AI Chip Landscape
A Google‑Marvell alliance would reshape the competitive dynamics of the AI chip market. By diversifying its supply chain, Google reduces reliance on Broadcom while gaining access to Marvell’s expertise in memory‑centric architectures—a critical bottleneck for scaling AI models. For Marvell, securing a hyperscaler of Google’s stature not only validates its technology but also opens a pipeline for future custom‑silicon projects with other major cloud players. The partnership exemplifies the broader trend wherein hyperscalers are moving from purchasing off‑the‑shelf silicon to co‑designing bespoke accelerators that tightly integrate compute, memory, and interconnect to meet the unique demands of modern AI workloads.
Conclusion: A Win‑Win Poised for Growth
In summary, Alphabet’s push to expand its semiconductor footprint is finding a promising ally in Marvell Technology. The potential co‑development of a new TPU and a memory‑processing unit could bolster Google’s AI infrastructure while giving Marvell a high‑profile customer that catalyzes its custom‑chip ambitions. With Marvell already projecting substantial market‑share gains and revenue growth, a successful collaboration could accelerate those forecasts, delivering meaningful upside for investors who act ahead of the market’s full recognition of the opportunity. As the AI race intensifies, the synergy between Google’s algorithmic prowess and Marvell’s chip‑design capabilities may well become a defining feature of the next generation of AI hardware.
https://www.fool.com/investing/2026/04/25/alphabets-google-could-supercharge-this-artificial/