Alphabet (GOOGL): Google’s AI Boss Just Stepped Back. Is DeepMind Falling Apart?

Nvidia CEO Jensen Huang called Marvell Technology (NASDAQ:MRVL) the 'next trillion-dollar company'. Alphabet (NASDAQ:GOOGL) expanded its partnership with Marvell, including a warrant to buy 58.97 million shares. Marvell reported record revenue of $2.42 billion for Q1 2027, up 28% YoY, and guided Q2 revenue to $2.7 billion, up 35%. Google's deal could imply $120 billion in purchases if all performance-based tranches vest.

Tesla (TSLA) stock rose 4% to $357.91 on news of its Europe Semi launch and Las Vegas robotaxi permits, despite a large recall in China. Uber (UBER) and Alphabet (GOOGL) also saw gains, though smaller. The Global X Autonomous & Electric Vehicles ETF (DRIV) increased by 1%. Tesla's China recall involves 2.98 million vehicles, with China being a significant revenue source.

Alphabet's CEO Sundar Pichai announced that AI Overviews has 2.5 billion monthly users, driving record ad revenue of $81 billion in Q2, up 14% YoY. The company is integrating AI deeper into its ad business and expanding Search capabilities, with advertising accounting for 2/3 of total revenue. Alphabet's market cap is $4.2T, and it plans to increase capital expenditures in 2027.

Oppenheimer raised Marvell's price target to $300, citing AI-driven revenue growth and a Google partnership. Google's warrant implies $120B in purchases through 2033. Marvell's revenue is expected to grow significantly, with FY2028 estimates at $16.59B. The stock trades at high valuations, with bulls citing AI infrastructure demand and bears warning of potential multiple compression.

A federal judge partially overturned the conviction of former Google engineer Linwei Ding, who was found guilty of stealing AI trade secrets. Judge Vince Chhabria dismissed economic espionage charges, citing insufficient evidence that Ding intended to benefit China, but upheld the theft of trade secrets. Ding faces sentencing on September 1. The stolen information pertained to Google's AI infrastructure and chip designs, which were meant to give Google an edge over competitors like Amazon and Mi

Investor demand for AI-related corporate debt is waning, with tech bond spreads widening. Amazon and Alphabet's recent bond sales faced higher yields. Tech spreads are 89 basis points, 9 points wider than the overall market. AI debt issuance has surged to $220 billion in 2026, up from $12.5 billion last year. Investors are demanding larger concessions, and portfolio limits may constrain future demand.