marvel technology Stocks rose 6%; google The company plans to buy up to $12.2 billion in stock in semiconductor manufacturing companies, according to securities filings.
The deal is part of Google and Marvell’s partnership on custom chips, and will allow the tech giant to buy up to 58,970,907 shares at a price of $206.58 per share. This investment amount is linked to purchasing targets through fiscal year 2033.
Marvell said in a filing that the expanded deal includes products “attached to the[tensor processing equipment]ecosystem,” such as artificial intelligence inference accelerators, storage and network interface controllers.
In April, Marvell stock soared following reports of a chip deal with Google for artificial intelligence workloads. At the time, The Information reported that the deal included TPUs and memory processing units.
Competitors including Google and its megacaps Amazon, meta and microsoft has been working on developing custom silicon chips for AI workloads in an effort to find cheaper alternatives to Nvidia chips.
For the past decade, Google has primarily worked with Broadcom on custom chips. The two companies expanded their deal in April.
broadcom‘s stock price fell about 5% on Wednesday.
Marvell and Broadcom stock price charts.
