Marvell Technology (MRVL) stock climbed after the company announced a major custom chip deal with Alphabet’s Google. MRVL was up around 3% on the news, trading near $235.40.
Marvell Technology, Inc., MRVL
The deal centers on Marvell’s data center AI platform, covering custom accelerators, storage controllers, network controllers, memory controllers, and near-memory compute.
The agreement adds Google’s Tensor Processing Unit (TPU) to Marvell’s growing list of custom AI chip customers, joining Amazon Web Services Trainium and Microsoft Maia.
As part of the deal, Google received warrants to purchase up to 58.97 million MRVL shares at a strike price of $206.58 each. If fully exercised, that stake would be worth roughly $12.18 billion.
Full vesting of those warrants is tied to Google hitting $120 billion in cumulative purchases from Marvell over approximately seven years, through fiscal 2033.
Oppenheimer reiterated an Outperform rating and kept its $250 price target on MRVL. The firm noted that Broadcom remains Google’s primary TPU partner, with Marvell and MediaTek likely working on newer products.
Stifel’s five-star analyst Tore Svanberg reiterated his Buy rating and $350 price target on MRVL, implying about 47.5% upside. He said the Google deal “signals progress and growth in spades” for Marvell’s custom chip business.
Svanberg had been watching Marvell’s Custom business for signs of XPU Attach momentum, which links custom chips to AI systems. He sees the Google deal as confirmation that progress is being made.
William Blair analyst Sebastien Naji also maintained his Buy rating. He believes the deal could expand Marvell’s role in Google’s AI TPU work through fiscal 2033, adding revenue across AI chips, compute, and storage.
Naji pointed to the warrant structure as a signal of strong long-term revenue potential, giving Google added incentive to grow its business with Marvell.
UBS raised its price target to $310 while keeping a Buy rating. Barclays reiterated Overweight with a $275 target, estimating the deal could add roughly $18.5 billion per year in incremental revenue and $6.15 in earnings per share if all warrants are exercised.
JPMorgan kept its Overweight rating with a $240 price target. Raymond James held a Strong Buy rating at a $235 target.
Oppenheimer expects the deal to support management’s outlook for custom AI chip sales to double next year, topping $4 billion, before reaching over $10 billion in 2028.
Marvell has posted 34% revenue growth over the last twelve months, driven by its AI business.
The company is set to report second-quarter fiscal results on Thursday, August 27, 2026.
Wall Street’s consensus on MRVL sits at Strong Buy, based on 23 Buy ratings and five Holds over the past three months. The average price target is $274.04, implying 15.5% upside from current levels.
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