Marvell Gains Momentum with Google Partnership and Analyst Upgrades
Marvell Technology (MRVL) is gaining strong support from Wall Street analysts, who have raised price targets following a major custom chip deal with Alphabet's Google. The partnership could bring in up to $12 billion for Marvell through an equity stake by Google tied to future purchases until 2033. Analysts expect significant revenue growth from three of Marvell’s AI chip lines serving Google, potentially reaching $3 billion each annually by 2028. The deal also strengthens Marvell's position in Amazon's Trainium chips despite losing the next design cycle to a competitor. However, analysts believe its role will continue into future generations and could expand further with new opportunities from the Celestial AI partnership. With custom chip contracts now covering all three major U.S. cloud providers—Amazon, Microsoft, and Google—Marvell is shifting perceptions as it moves beyond being seen merely as a second-tier player to Broadcom. The stock has outperformed both its sector and broader semiconductor ETFs over the past year, with analysts viewing this deal as validation of Marvell’s strategic importance in AI infrastructure. The equity stake from Google signals long-term commitment and could help solidify investor confidence.
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Topics: Amazon Trainium custom AI chips Google partnership Marvell Wall Street upgrades