Why is Marvell stock surging? Google’s $12.2 billion AI chip deal explained

Marvell Technology is getting a major boost from Google’s growing AI chip business. The chipmaker will help Google develop its custom AI chips, while Google has also received an option to buy as much as $12.2 billion worth of Marvell shares.

The news sent MRVL stock sharply higher. Marvell shares jumped more than 11% in premarket trading after the deal was announced. At the same time, Broadcom stock fell.