MRVL Stock Bucks War-Linked Market Selloff, Surges 6% Premarket On Google Chip Deal Report

• Google is reportedly in discussions with Marvell to develop two chips aimed at improving the efficiency of AI model operations, The Information reported.
• On Stocktwits, the retail sentiment for MRVL was ‘bullish,’ unchanged since Friday. 
• Some retail investors believe MRVL would lose its gains; the stock has gained over 40% in April so far.

Marvell Technology shares rose 5.8% in early premarket trading on Monday, bucking a broader market decline amid escalating tensions in the U.S.-Iran conflict.

While the gains were more muted than the roughly 10% overnight jump, triggered by a report detailing talks of a major deal, the stock remained in the green even as major chipmakers slipped, with Nvidia, AMD and Intel down between 0.8% and 1.7%. 

MRVL-GOOGL Chip Talks

Google is reportedly in discussions with Marvell to develop two chips aimed at improving the efficiency of AI model operations, The Information reported on Sunday, citing two people with direct knowledge of the discussions.

One of the chips is said to be a memory-focused processor that would complement Google’s existing tensor processing units (TPUs), while the other is a next-generation TPU tailored specifically for AI inference workloads.

While Google has bought data center chips from Marvell before, those purchases were off-the-shelf, whereas the current discussions aim to design semiconductors exclusively for Google’s needs, according to the report. Alphabet’s stock was down 1% in Monday’s premarket session.

MRVL Retail Traders Proceed With Caution

On Stocktwits, the retail sentiment for MRVL was ‘bullish,’ unchanged since Friday. Marvell shares have jumped about 40% this month – and are on track for another record high if the premarket move holds – amid a sharp rebound in chip stocks.

While the overall view was positive, some retail traders appeared to be skeptical.

“$MRVL is the definition of 'priced for perfection' right now. RSI is screaming overbought, the Google 'news' is pure speculation, and the pumpers are working overtime to exit their positions. If you aren't taking profits at $140, you’re just providing liquidity for the whales. Don’t be the one left holding the bag,” said a user.

Another wrote: “MRVL mark this post, this will dip below $120 this week.”

US Markets In Flux Again?

Meanwhile, U.S. futures declined early Monday as tensions between the U.S. and Iran escalated over the weekend with the seizure of an Iranian-flagged cargo ship. 

President Donald Trump on Sunday said the U.S. had seized the cargo ship in the Gulf of Oman. This comes after Iran declined to join another round of peace talks in Pakistan planned by the U.S.

Trump also threatened to blow up all power plants and bridges in Iran if the country didn’t agree to a deal, as the ceasefire between the two countries expires this week.

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