This article first appeared on GuruFocus.
Marvell Technology (NASDAQ:MRVL) shares slid about 6% Friday, giving back part of the gains from the previous two sessions as investors weighed the chipmaker’s expanding work with Google on custom artificial intelligence processors.
Wedbush said the arrangement provides another indication that specialized silicon can play a useful role alongside conventional AI computing hardware. The brokerage’s view adds to the market’s focus on Marvell’s custom-chip business as major technology companies build more of their own processors.
Marvell’s agreement with Google covers development of custom AI chips, broadening its involvement with the internet company’s silicon efforts. The partnership has helped put renewed attention on Marvell’s position in the growing market for purpose-built AI hardware.
The stock’s Friday decline came after a sharp two-day advance, suggesting investors were taking some gains despite the favorable analyst view. Marvell’s reaction also highlights how quickly expectations can shift after major AI-related developments.
For MRVL stock, the Google relationship could support longer-term demand for custom silicon, but the pullback shows investors may still be cautious after the recent rally.
