Marvell's Google Deal Could Drive $18B in Annual Revenue

Piper Sandler has initiated coverage of Marvell Technology (MRVL) with a Buy rating and a price target of $270, citing the company's strong position in data-center components and its deepening relationships with large cloud providers.

The analyst, David O'Connor, expects Marvell to benefit disproportionately from the buildout of artificial intelligence infrastructure and points to the company's agreement with Google (GOOGL) as a key driver of growth. He estimates that the Google TPU programs could generate about $18 billion in annual revenue once fully ramped.

O'Connor also highlighted Marvell's involvement in accelerator programs with Amazon (AMZN) and Microsoft (MSFT), specifically AWS Trainium and Maia, but argues that supplying custom XPU solutions to hyperscalers is the larger opportunity. He expects Marvell's Oct. 6 analyst day to serve as a catalyst for further growth.