Alphabet (GOOGL) and Marvell (MRVL) shares are both moving higher on Monday after the tech pairing engaged in talks for a new AI chip deal. Per areportfrom The Information, Marvell is considering partnering with Alphabet to develop two tensor processing units (TPUs) to take on Nvidia’s (NVDA) GPUs. MRVL popped over 4.8% after trading opened, while GOOGL ticked up a fraction of a percent.

The talks focus on building 2 chips designed to better handle AI workloads, according to The Information. One would be a memory processing unit that works alongside Google’s tensor processing units, while the other would be a new TPU built specifically for inference tasks. It is a clear signal that Google wants to keep pushing its own silicon as a credible alternative to Nvidia, whose GPUs still dominate most AI infrastructure today.

Marvell stands to benefit from deeper integration into a major cloud provider’s supply chain, which is driving investors toward it. The potential arrangement comes as technology firms continue seeking diversified sources for the advanced silicon required to power data centers and generative AI models. As for Alphabet (GOOGL), the collaboration with Marvell represents another step in positioning its in-house TPU hardware as a viable alternative to the graphics processors sold by Nvidia.

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After the reported deal with Marvell, Alphabet (GOOGL) stock is looking solid heading into the firm’s earnings report. Institutional funds are going all-in on Google’s stock ahead of Alphabet’s earnings call next Wednesday. Smart money has remained aggressive in accumulating GOOG before the revenue numbers are out. According to the 13F filings with the SEC, institutional heavyweights are front-runners in buying Google stock in April.

While Nvidia (NVDA) remains a top option in tech due to its sheer dominance in AI, other tech stocks have become just as good investment options, such as GOOGL. Indeed, Alphabet is among the top-performing Magnificent 7 equities in April. It has risen nearly 24% in three weeks, which has made both retail investors and institutional clients make a beeline to accumulate GOOGL. If earnings bode well and beat expectations from the Street, Alphabet (GOOGL) may stamp itself as an early tech stock of the year candidate.

Source: Watcher Guru