Marvell’s Google AI Deal Could Unlock a Staggering $120 Billion Opportunity, Analyst Says

Marvell Technology Inc. (NASDAQ:MRVL) could unlock a major new artificial intelligence revenue opportunity through its expanded partnership with Alphabet Inc.’s (NASDAQ:GOOGL) Google, according to JPMorgan.

Analyst Harlan Sur reiterated an Overweight rating on Marvell. He said the agreement could support upside to Wall Street’s revenue and earnings estimates as Google’s custom AI infrastructure expands.

Marvell’s Google Deal Could Unlock $120 Billion Opportunity

Marvell on Thursday announced an expanded, long-term partnership with Google to develop custom chips that support Google’s Tensor Processing Unit, or TPU, ecosystem.

The programs include an AI inference offload engine, storage controllers, networking chips and memory interface controllers. However, JPMorgan stressed that the agreement is not a win for Google’s core TPU accelerator. Instead, Marvell’s chips will sit alongside and support the TPU.

That distinction did little to dampen JPMorgan’s enthusiasm about the potential size of the opportunity.

Under the agreement, Google received warrants to purchase about 59 million Marvell shares. About 57.6 million shares will vest based on Google’s purchases of Marvell custom products through fiscal 2033.

One of 240 equal warrant tranches will vest for every $500 million in associated revenue. JPMorgan calculates that full vesting would imply about $120 billion in cumulative revenue, or roughly $19.2 billion annually over about 6.25 years.

JPMorgan Sees Earnings Upside For Marvell

The potential annual revenue stands well above Wall Street estimates of about $11.5 billion for fiscal 2027 and $16.8 billion for fiscal 2028.

JPMorgan cautioned that the warrant structure does not guarantee those sales. Still, the firm believes a significant portion of the opportunity could be incremental to current expectations.

Sur’s model shows a path toward about $11 per share in calendar 2028 earnings, compared with the current Wall Street estimate of $9.52.

The analyst also said the partnership validates a broader shift among hyperscalers toward custom silicon beyond core AI accelerators. That expansion could increase demand for chips used in networking, storage, memory interfaces and near-memory computing.

MRVL Price Action: Marvell Technology shares were up 1.96% at $241.91 at the time of publication on Thursday, according to Benzinga Pro data.

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