Is Marvell Stock a Buy After Alphabet and Nvidia Deals?
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By Geoffrey Seiler – Apr 27, 2026 at 7:30AM ESTKey PointsDeals with Alphabet and Nvidia position Marvell better moving forward.The company's stock price has more than doubled in less than two months.Questions remain about Marvell's custom AI chip business. When it comes to custom ASIC (application specific integrated circuit) technology, Broadcom (AVGO +0.62%) has become the leader of the pack. However, Marvell Technology (MRVL 0.76%) got a boost when it was reported that the company was set to work with Alphabet (GOOGL +1.71%) (GOOG +1.35%) on some versions of its Tensor Processing Units (TPUs). Marvell's ASIC business has been a point of consternation with investors. The company is behind Amazon's Trainium chips, but there is a widely held belief that it is set to play a less prominent role in these chips moving forward, with Taiwanese company AIchip taking the lead role. Meanwhile, Microsoft's newer Maia chip has yet to take off, and there were rumors that it could even look to turn to Broadcom for future generations. Image source: The Motley Fool. That said, Marvell has discussed having custom chip design wins with more than 20 customers. It also relatively recently signed a five-year deal with Amazon to supply it with custom AI chips and optical components. This new deal with Alphabet, if consummated, will surely help ease any investor fear over this business. Alphabet is not replacing Broadcom as the main co-developer of its core TPUs, as the two companies just extended their partnership by another five years. However, Marvell would help Alphabet develop a memory processing unit that would work besides its TPUs, and another TPU to help with inference. Marvell is about more than just ASICs, however. The company has a very strong optical connectivity business, especially with interconnects, that is growing quickly with the rise of AI data centers. The company expects to grow its total revenue this year by 30%, with a 40% jump in its data center business and a 50% surge in its interconnect business. ExpandNASDAQ: MRVLMarvell TechnologyToday's Change(-0.76%) $-1.25Current Price$164.31Key Data PointsMarket Cap$144BDay's Range$158.51 - $170.8452wk Range$53.77 - $170.84Volume741KAvg Vol22MGross Margin50.10%Dividend Yield0.15% Earlier this month, the company received a $2 billion investment from Nvidia to collaborate on silicon photonics and let Marvell's custom chips work with its NVLink ecosystem. NVLink has been a proprietary system, so this is a nice win, as it looks like Nvidia wants Amazon's Trainium chips and its graphics processing units (GPUs) to be able to work together. Meanwhile, the optical interconnect market is growing in importance as AI chip clusters keep growing larger. Is the stock a buy? Marvell shares have more than doubled in less than two months. This has taken its valuation from reasonable to looking pretty pricey, with a forward price-to-earnings (P/E) of over 43 times. The company is in better shape after these deals, but I don't think they justify its price doubling in such a short period, and questions still linger about its Amazon custom chip business in the longer term. As such, I wouldn't chase this AI stock.Read NextApr 21, 2026 •By Micah ZimmermanThe Iran Ceasefire Sent Tech Stocks Soaring. Here Are the 3 That Have the Most Room Left to Run.Apr 20, 2026 •By Eric TrieStock Market Today, April 20: Marvell Gains on Reports of Custom AI Chip Talks With GoogleApr 20, 2026 •By Keith NoonanWhy Marvell Stock Is Surging TodayApr 17, 2026 •By Adam LevyNvidia Just Piled $2 Billion Into This Chip Stock, and It Can Still Climb Higher From HereApr 16, 2026 •By Harsh Chauhan2 Super Semiconductor Stocks for the Next Stage of the AI Supercycle.
Buy Them Before They Soar by 74% to 81%.Apr 15, 2026 •By Jose NajarroThis $2 Billion Nvidia Investment Signals What's Coming NextAbout the AuthorGeoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. He holds a bachelor’s degree in history from Haverford College.TMFFindProfitStocks MentionedMarvell TechnologyNASDAQ: MRVL$164.31(-0.76%)-$1.25BroadcomNASDAQ: AVGO$422.53(+0.62%)+$2.59AlphabetNASDAQ: GOOGL$344.69(+1.71%)+$5.80AlphabetNASDAQ: GOOG$342.32(+1.35%)+$4.57*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.