Marvell's Google Deal Sparks Price Target Surge
Marvell Technology (MRVL) continues to impress Wall Street analysts. The company's custom AI chip design work for Google and Amazon has boosted its stock price, with many firms revising their price targets upward.
In a recent deal, Marvell signed a partnership with Alphabet's (GOOG) (GOOGL) Google that could be worth up to $12 billion in equity. The agreement lets Google take potential equity stakes in the company tied to its chip purchases through 2033.
Analysts expect Marvell to contribute around $9 billion from three of its custom AI chip lines tied to Google by 2028, with each line expected to bring in approximately $3 billion. This comes on top of its growing role in Amazon's (AMZN) Trainium chips, which are worth roughly $1 billion this year and $2 billion next year.
Marvell has now landed custom AI chip design work for all three largest U.S. cloud companies: Amazon, Microsoft (MSFT), and Google. This milestone is seen as a significant shift in the company's story, potentially elevating it from being the clear number two to Broadcom in this space.