Marvell’s stock soars on news of Google chip deal — and Broadcom’s falls
News of a chip supply contract with Google and the granting of a stock purchase option worth approximately $1.2 billion drove Marvell's stock price surge.
We considered a buy based on the strong catalysts of a large-scale chip contract and stock purchase option with Google. As it has entered a short-term overheated zone with an RSI of 70.9, this is a timing to respond by monitoring the attempted further upside toward the resistance level of $240.18 and price defense around the support level of $162.90.
Take profits on attempts for further upside toward the resistance level of $240.18 during the short-term overheating phase, and cut losses if price defense collapses near the support level of $162.90.
RSI(14) stands at 70.9, indicating a short-term overheating zone, while the moving averages are not in a bullish alignment, trading volume is 1.19 times the 20-day average, and the fluctuation rate over the past 7 days is -1.2%.
Reference can be made to past similar successful cases involving the overlapping keyword 'Marvell', specifically the MRVL cases on 2026-09-17 and 2026-08-20, which recorded returns of 13.2% and 11.5%, respectively, on Google chip contract news. Additionally, the VEEE case (a return of 451.7%), which represents a global top-tier performance, can be referenced despite the lack of direct similarity grounds.
Based on the strong positive catalyst of a chip supply contract with Google, a projected return of 3.5% was set, but the actual result recorded a return of 13.2%, receiving an OVERHIT rating. At the time, the RSI had entered a short-term overheated zone at 70.9, prompting consideration of a conservative approach; however, accompanied by 1.19x trading volume and the breakthrough of the resistance line at $240.18, it demonstrated much stronger upward momentum than expected. The trend from past similar cases where Google chip contract news actually drove stock price increases proved to be accurate this time as well.
Reviewing the previous tendency to conservatively set the target price by underestimating the upward potential based solely on the short-term overheated zone indicator (RSI 70.9). Moving forward, if high-impact positive catalysts such as large-scale theme contract news occur, a strategy will be applied to flexibly raise the profit-taking target price higher, while simultaneously considering whether it is accompanied by increased trading volume and the rising trend of the sector as a whole.