Marvell jumps on Google chip deal; issues warrants to search giant
Marvell (MRVL) saw a significant surge in its stock price following the announcement of a supply contract for AI chips with Google and the issuance of warrants to the search giant.
We considered entering based on the strong positive news of a large chip contract with Google and the issuance of stock warrants, along with a trading volume that was 1.19 times the 20-day moving average. Although the RSI (14) is at 70.9, indicating a somewhat overbought condition, we assessed that there is concentrated buying interest in the context of a recent trend of higher highs and higher lows over the past seven days.
If the collaboration momentum with Google and the technical trend are maintained, I will take profits at the target price of $240.18. In the event that the price reaches the low range of the candles as of 2026-08-20 or if volatility increases and the trend breaks down, I will respond with a stop-loss at $162.9. (※ The take-profit and stop-loss prices are based on REPORTING calculations.)
The technical indicators at the entry point show an RSI(14) of 70.9, approaching the overbought zone, and the moving averages are in a non-aligned state. The trading volume has increased to 1.19 times the 20-day average, and the recent 7-day volatility recorded a change of -1.2%.
Past similar success cases include an instance on 2026-08-20 with the same stock (MRVL) where the news 'Marvell jumps on Google chip deal; issues warrants to search giant' resulted in a 11.5% profit, directly overlapping with the keyword 'Marvell Technology'. Additionally, while there is no direct similarity basis for the cases of VEEE (2026-07-16, 451.7%) and LRCX (2026-07-06, 346.8%), they are noted for reference as top performers in the region.
Based on the strong positive news of a chip supply contract with Google and the issuance of new stock warrants, we entered the position and recorded an actual result of 11.5%, surpassing the forecasted return of 4.5%. At the time of entry, the RSI(14) was at 70.9, indicating an overbought condition, and we accurately noted that the trading volume was 1.19 times the 20-day average. However, we reflect on the fact that we conservatively estimated the impact of the partnership with Google and the resulting concentration of supply and demand, which led us to predict a somewhat lower increase than what actually occurred.
For stocks that are accompanied by strong momentum news and trading volume, even if technical indicators point to a short-term overbought condition (RSI above 70), we will reflect a more flexible upward adjustment of the profit-taking target in the next trade, considering the impact of key contract disclosures (such as 8-K Item 1.01).