Shares of Marvell Technology (MRVL) surged 10.87% in pre-market trading on Thursday, following reports that SoftBank Group had explored a potential takeover of the U.S. chipmaker earlier this year. The news, first reported by Bloomberg, has sparked investor interest in the semiconductor company, highlighting its strategic value in the rapidly growing artificial intelligence (AI) sector.

According to sources familiar with the matter, SoftBank's billionaire founder Masayoshi Son has been studying Marvell as a possible acquisition target for years. The Japanese conglomerate reportedly made overtures to Marvell several months ago, with the idea of combining it with Arm Holdings, the UK chip designer that SoftBank controls. However, the two sides couldn't reach an agreement on terms at that time.

The potential deal, if realized, would have been the semiconductor industry's largest-ever acquisition. Marvell, which designs chips for data centers powering cloud computing and AI, could significantly enhance SoftBank's position in the AI hardware market. While no active negotiations are currently underway, the possibility of renewed interest remains, given SoftBank's strategic focus on AI-driven technologies.

This news comes at a time when Marvell's stock had underperformed some of its peers in the semiconductor sector, having declined about 16% year-to-date before this pre-market surge. The company, with a market capitalization of approximately $80 billion, has been working to capitalize on the growing demand for AI infrastructure. The takeover exploration by SoftBank underscores Marvell's potential in the competitive chip market and its importance in the AI ecosystem.