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Marvell Technology shares surged nearly 10% following a new chip manufacturing deal with Google.

Marvell Technology shares rose approximately 10% on Wednesday after the company announced a deal to develop custom chips for Google. The agreement includes a warrant allowing Google to purchase up to 58,970,907 shares of Marvell Technology at $206.58 per share, representing a stake of roughly 7% of the company. This deal is part of an expanded partnership where Marvell Technology will provide artificial intelligence inference accelerators and storage and network interface controllers that attach to the Google tensor processing unit ecosystem. Analysts suggest the deal provides Marvell Technology with significant exposure to the AI industry and long-term growth opportunities, potentially bringing in $120 billion in cumulative revenue through 2033. While Marvell Technology's stock rose, its rival Broadcom saw a decline of about 5% on the same day. Marvell Technology is scheduled to report its second-quarter results on August 27.

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