The Zhitong Finance App learned that after MRVL.US (MRVL.US) announced the expansion of semiconductor cooperation with Google (GOOGL.US), Wall Street analysts generally believed that this was a “significant positive factor” for Matt Murphy's Maywell Technology. Affected by the disclosure of this news, Maywell Technology's stock price rose sharply on Wednesday.
According to the expanded cooperation framework between the two parties, Maywell Technology and Google will jointly develop a “full range of customized chip projects covering the TPU ecosystem”, including products such as AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory computing.
In recent years, demand for Google's custom chips such as Tensor Processing Units (TPUs) for AI workloads has grown dramatically as companies seek alternatives to Nvidia's expensive graphics processors (GPUs).
RBC Capital Markets analyst Srini Pajjuri stated in a report to clients: “We believe that Maywell Technology has previously cooperated with Google on supporting XPU solutions, covering products such as CXL and NIC.” He further said that although the market has previously unconfirmed rumors about the “Frozen v2” project, the disclosure of the 8-K document marks the first time that Google has officially confirmed that Maywell Technology is developing an AI accelerator for it, which confirms the expanding role of Maywell Technology in the field of ultra-large-scale customer-specific chips — the company has previously reached similar cooperation with Amazon (AMZN.US) and Microsoft (MSFT.US).
Looking further, Pajjuri predicts that Google will receive about $80 billion to $90 billion in tensor processing unit (TPU) supply from Broadcom (AVGO.US) and MediaTek next year. At present, it is unclear whether Maywell Technology is sharing part of this share or expanding the market market as a whole, but what is certain is that this cooperation will constitute a long-term “major benefit” for Maywell Technology. Pajjuri gave Maywell Technology an “outperforming the market” rating.
Wells Fargo analyst Aaron Rakers is also optimistic about the partnership, calling it a “noteworthy incremental benefit” for Mewell Technology. Rakers maintained an “outperforming market” rating and set a target price of $240 per share.
As part of the deal, Maywell Technology granted Google a share warrant on August 18, allowing it to purchase up to 58.97 million shares of the company at an exercise price of US$206.58 per share. The company signed a commercial agreement with Google on July 29 to supply it with custom chip products. Within the first year after signing the agreement, 1,360867 million warrants will be owned each quarter. The remaining shares will be owned according to the “independent purchase” situation of Maywell Technology from the third quarter of fiscal year 2027 to the end of fiscal year 2033. Of these, every time a product jointly developed by the two parties brings in revenue of 500 million US dollars, a batch of shares will be owned.