Marvell Is Partnering With Google to Create Custom Chips. How to Play MRVL Stock Here.

Custom chipmaker Marvell Technology (MRVL) has been chosen by Alphabet's (GOOG) (GOOGL) Google to develop custom chips along with it. Custom chips cost less than GPUs but lack the flexibility offered by the latter. Notwithstanding that, Matt Bryson of Wedbush Securities reckons that it is “advantageous” for players that have custom chip design capabilities.

In a note to clients, Bryson said, “Net, we don't see this outcome as necessarily unexpected. More importantly, we believe this spate of news and speculation reiterates that in the current environment, companies with custom silicon design capabilities as well as IP blocks are in an advantageous position and that given the spate of opportunities, it's not necessarily a zero-sum game (e.g., if Marvell owns, AVGO (Google's largest TPU partner) or AMD, or NVDA are necessarily losers).”