Marvell Technology's shares jumped after the company handed Google a warrant to buy its shares as part of their partnership to develop custom semiconductor products.

In premarket trading, the stock was 13% higher at $243.36. As of the last close, the shares had climbed 23% over the last three months.

Marvell said Wednesday it issued to Google a warrant to buy up to a total of almost 59 million shares at an exercise price of $206.58 each.

About 1.4 million of the warrant shares become exercisable in equal quarterly installments during the first year of a commercial agreement between the companies, the California-based company said.

The remaining shares will vest based on discretionary purchases between the third quarter of fiscal 2027 through the end of Marvell's fiscal year 2033 in 240 equal tranches, with one tranche vesting for each $500 million in custom products revenue.

In late July, Marvell and Google entered a commercial agreement spanning a range of custom silicon programs, including artificial intelligence inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute.