Google deepens its partnership with Marvell for custom silicon and networking, challenging Broadcom's position in the AI semiconductor space.

Broadcom shares are under pressure as investors weigh Google’s expanded relationship with Marvell Technology and fresh performance data from an OpenAI chip project. Despite these market headwinds, Broadcom enters the development cycle with strong fundamentals, reporting $10.8 billion in AI semiconductor revenue during its fiscal second quarter, a 143% increase from a year earlier. Company management expects approximately $16 billion in AI-related revenue for the current quarter.

OpenAI stated that its Jalapeno inference processor delivered 1.5 to 1.9 times more AI work per watt than comparison systems at peak throughput. The project could provide Broadcom with another avenue to grow its custom silicon business as cloud companies continue to diversify their supplier base. While Google’s ties with Marvell create direct competition in the custom accelerator space, OpenAI’s custom-chip initiative could serve as a separate AI growth driver for Broadcom.

Marvell Technology shares rose nearly 8% after Google announced an expansion of its cooperation on custom AI processors and networking products. The arrangement could generate as much as $120 billion in revenue if purchase targets are met through fiscal 2033. The partnership underscores the intensifying race for specialized AI hardware, even as Broadcom leverages alternative client relationships to sustain its trajectory in the custom silicon market.