Nvidia's 15% Price Hike Hands Google and Marvell an Opening

Nvidia has warned its largest customers that AI servers built around its Grace Blackwell and Vera Rubin chips could cost over 15% more in early 2027 due to rising memory prices, a move that benefits rivals Alphabet and Marvell. Alphabet, which buys Nvidia hardware while selling its own TPU-based systems, is exposed to the increases but can monetize alternatives. Google Cloud revenue grew 82% to $24.8 billion in the June quarter, with a $514 billion backlog, though Q2 free cash flow was negative $5.9 billion. Marvell reported Q1 fiscal 2027 revenue of $2.42 billion, up 27.57% year over year, with data center accounting for 76% of total. Its custom chip business is projected to exceed $10 billion by fiscal 2029, backed by designs won at every major U.S. hyperscaler.