Google signed an equity subscription agreement to expand its alliance with Marvell, becoming Marvell's fifth-largest investorCITE:E1. Under the agreement, Google may purchase up to $12.2 billion worth of Marvell shares, equivalent to as many as 58.97 million sharesCITE:E1. The business-for-equity arrangement is expected to generate up to $120 billion in collaboration revenue for Marvell through fiscal year 2033CITE:E2.
MediaTek shares dropped more than 4% intraday on August 20 as the Google-Marvell deal rippled through Taipei's stock marketCITE:E3. The concern traced back to rumors that AMD and Marvell were competing for Google's future AI ASIC business, which prompted investment trusts to net sell 5,654 lots of MediaTek stock over four consecutive trading days; MediaTek shares fell for four straight sessions, a cumulative decline of 12.7%CITE:E7.
Foreign institutional investors and Wall Street banks say Google's agreement does not represent MediaTek being displacedCITE:E8. J.P. Morgan says the agreement should not be read as Marvell taking over Google's core TPU accelerator ordersCITE:E4. Morgan Stanley adds that the deal is positive for Marvell but is not evidence that Broadcom's core TPU role is being replaced, noting the agreement's wording points to Marvell gaining ground around the TPU ecosystem rather than the core TPU itselfCITE:E5. Market sources say MediaTek's share drop "should have no relation" to the Google-Marvell agreement, since Google and Marvell use different chip architectures, meaning the deal should not substantially affect MediaTek's businessCITE:E6. US-based foreign institutional investors describe Google's move as expanding its self-developed chip partner ecosystem under a multi-vendor strategy, rather than replacing MediaTek or other suppliers that already hold orders, adding that the market underestimates MediaTek's supply chain management and execution capabilityCITE:E8.
MediaTek shares rebounded on lower trading volume after the four-day decline, rising 2.03% to NT$3,775 as of 11:36 a.m., on turnover of about 3,727 lotsCITE:E9. MediaTek raised its 2027 AI ASIC market size forecast to $80 billion and lifted its target market share from a prior 10%-15% range to 15%-20%, expecting the opportunity to expand further in 2028 as first- and second-generation ASICs contribute revenueCITE:E10. US foreign institutional investors project MediaTek's AI ASIC revenue growing from $2 billion in 2026 to $18 billion in 2027 and reaching $40 billion in 2028, maintaining a Buy rating on MediaTek with a target price of NT$6,800CITE:E11.
| Metric | Value | Evidence |
|---|---|---|
| Google's maximum Marvell equity purchase | $12.2 billion (~58.97 million shares) | E1 |
| Marvell's investor ranking after the deal | 5th largest investor | E1 |
| Expected collaboration revenue through FY2033 | up to $120 billion | E2 |
| MediaTek intraday drop (Aug 20) | more than 4% | E3 |
| Investment trust net selling (4 sessions) | 5,654 lots | E7 |
| MediaTek cumulative decline (4 sessions) | 12.7% | E7 |
| MediaTek same-day rebound | +2.03% to NT$3,775, ~3,727 lots traded | E9 |
| Revised 2027 AI ASIC market size forecast | $80 billion | E10 |
| Revised target market share | 15%-20% (up from 10%-15%) | E10 |
| AI ASIC revenue forecast, 2026 | $2 billion | E11 |
| AI ASIC revenue forecast, 2027 | $18 billion | E11 |
| AI ASIC revenue forecast, 2028 | $40 billion | E11 |
| Analyst target price | NT$6,800 (Buy) | E11 |
What this means: MediaTek's stock swung from a four-day, 12.7% slide driven by AMD/Marvell rumor exposure to a same-day 2.03% rebound once J.P. Morgan, Morgan Stanley, and foreign institutional investors converged on reading the Google-Marvell agreement as ecosystem expansion rather than order substitution. That reading lines up with MediaTek's own upward revisions to its 2027 AI ASIC market and share targets, suggesting the initial sell-off reflected headline sensitivity to Google's expanding chip-partner roster more than a change in MediaTek's underlying order book.
The four-day, 12.7% slide followed by a same-day 2.03% rebound shows how thin the line is between rumor-driven flow and fundamentals-driven positioning in MediaTek's stock: investment trusts sold on an AMD/Marvell rumor, while J.P. Morgan, Morgan Stanley, and foreign institutional investors read the same Google-Marvell agreement as ecosystem expansion around the TPU stack, not order substitution. What ties the two camps together is MediaTek's own upward revision — a 2027 AI ASIC market forecast raised to $80 billion and a target share lifted to 15%-20% — which gives the bullish case a company-sourced anchor rather than just analyst modeling. The indicator worth watching next is whether MediaTek's actual AI ASIC revenue tracks the projected path from $2 billion in 2026 toward $18 billion in 2027, since that trajectory, not the Marvell headline, is what the Buy rating and NT$6,800 target actually rest on.
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TSMC reported record Q2 2026 revenue of US$40.20 billion, up 33.7% year-on-year in dollar terms, at the high end of its own guidance<CITE:E1>. The company raised full-year 2026 capital expenditure to US$60–64 billion and now expects annual dollar revenue growth of slightly above 40%<CITE:E5><CITE:E6>. It also added US$100 billion to its Arizona investment, bringing the total there to US$265 billion<CITE:E8>.
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