Marvell Jumps 6% as GF Securities Says Google Chip Delay Won’t Dent Its Position; Broadcom Rises 3%
Marvell Jumps 6% as GF Securities Says Google Chip Delay Won’t Dent Its Position; Broadcom Rises 3%
David Moadel Mon, October 19, 2026 at 5:09 PM UTC
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IM Imagery / Shutterstock.com (IM Imagery / Shutterstock.com)A reported delay in Google's next AI chip sent investors scrambling to gauge the fallout for its custom silicon partners, but one analyst thinks the market is misreading what the setback actually means for Marvell's long-term position.Quick Read -
Marvell jumped 7% and Broadcom rose 3% after GF Securities said Google's TPU delay won't alter Marvell's medium- to long-term supply chain standing.
SOXX outpaced QQQ 3% to 2% as Google's warrant to acquire up to 7% of Marvell shares signals a partnership extending well beyond one delayed chip.
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Wall Street is treating a reported delay in the next tensor processing unit (TPU) chip from Alphabet's (NASDAQ:GOOGL) Google as a manageable setback for its custom chip partners. Marvell Technology (NASDAQ:MRVL) stock is at $241.27, up 6% in afternoon trading.
Meanwhile, Broadcom (NASDAQ:AVGO) stock is up 3%, a smaller gain than the jump in Marvell shares. Data center operators buy Marvell's custom AI chips along with its optical and networking products, and Broadcom competes with Marvell in custom AI silicon and networking.
Analyst Note Calms Google Chip Fears
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GF Securities analyst Jeff Pu stated in a note that a reported delay in Google's next TPU doesn't change Marvell's medium- to long-term position in Google's chip supply chain. That view carries weight because Marvell has described its key hyperscaler partner as "one of the largest adopters of custom silicon."
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Last quarter's results gave Marvell a solid footing heading into the Google headlines. The chipmaker reported Q2 FY2027 revenue of $2.74 billion, up 36.5% year over year (YoY), along with non-GAAP earnings per share (EPS) of $0.94.
Marvell's Data Center segment generated $2.17 billion, up 46% YoY, and now accounts for 79% of revenue. CEO Matt Murphy said during the August earnings call that "AI-related bookings remain exceptionally robust."
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Networking and optics add a second growth leg for Marvell. Management expects scale-out switching to more than double during fiscal 2027 and stated that its scale-up optics opportunity is accelerating faster than previously expected.
Marvell's Google Ties Run Deep
Google's relationship with Marvell expanded in August through a broader custom silicon partnership that includes a warrant allowing Google to acquire up to 7% of Marvell shares tied to revenue targets. Murphy described the arrangement this way: "The warrant structure reflects the scale and long-term potential of the relationship and further aligns common interests as our work together expands."
The agreement reaches well beyond a single chip. It covers products attached to the TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory compute, which spreads Marvell's Google business across many product lines.
Marvell expects its custom business to "more than double year over year in fiscal 2028 and accelerate significantly in fiscal 2029," according to remarks on its August call. Its Q3 FY2027 guidance calls for revenue of $3.15 billion, plus or minus 5%, and non-GAAP EPS of $1.10 at the midpoint.
On the same call, Murphy pointed to longer-term upside, stating, "But clearly, there's a lot of upside bias in those numbers in fiscal 29 and beyond in custom." That outlook helps explain why a timing issue on one Google chip registers as a smaller threat to Marvell than the headline suggests.
Chip Stocks Outpace Large-Cap Tech
Chip stocks are running ahead of large-cap tech. The iShares Semiconductor ETF (NASDAQ:SOXX) is up 3%, in line with Broadcom stock. At the same time, the Invesco QQQ Trust (NASDAQ:QQQ) is up 2%, trailing the chip fund.
Broadcom CEO Hock Tan stated on the company's September earnings call: "Our engagement with Google has never been stronger." Under a long-term agreement, Broadcom develops and supplies future generations of TPUs and AI networking for Google, while Marvell's Google work covers inference accelerators and TPU-attached products.
Custom Chip Ramp Holds the Key for Marvell
Marvell's management expects its custom business to speed up significantly beginning in the second half of fiscal 2027, and its next quarterly report will test that call. That ramp carries a cost, since management flagged a sequential gross margin pressure from custom product mix, with Q3 non-GAAP gross margin guided to 57.5% to 58.5%.
A single analyst note could steady the view surrounding Marvell, but the company still has to convert its Google programs and broader custom pipeline into reported revenue (we reverse-engineered the characteristics past monster chip winners shared early in a free playbook here). Investors should consider keeping their position sizes modest until Marvell's custom chip ramp resolves.
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