Marvell's Google Deal Seen as 'Game-Changing' with Billions in Potential Revenue

Marvell's CEO Matt Murphy called the company's deal with Google 'game-changing', saying it could add billions of dollars in potential revenue beyond existing forecasts. The agreement, which represents up to $120 billion in cumulative revenue over six years, has left investors trying to determine its incremental value for Marvell.

When asked about the scale of the Google arrangement during the earnings call, Murphy said 'your math is not wrong', but added that the potential revenue is weighted towards fiscal 2029 and beyond. He stated that there's a 'lot of upside bias' in those numbers, implying custom revenue could be 'a lot larger' than currently modeled.

Marvell has raised its fiscal 2028 revenue outlook to about $18 billion, up from $16.5 billion previously. The company expects data-center revenue to grow more than 60% in fiscal 2027 and over 60% in fiscal 2028, driven by custom silicon, connectivity, and scale-up infrastructure.

Analysts on the call noted that dividing the $120 billion cumulative revenue figure across six years would imply an annual revenue opportunity of roughly $18 billion. Murphy stopped short of providing a new revenue target, saying further updates will come in October during Marvell's Investor Day.