Marvell Tie Up With Google Brings Big Potential

The Portfolio’s shares of Marvell (MRVL) are zooming higher on Wednesday following what was found in a company filing with the SEC. The revelation was an expanded custom silicon and AI focused deal with Google (GOOGL). Per the filing, the expanded relationship spans:

“…a comprehensive range of custom silicon programs that attach to the TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers, and near-memory compute.“

Helping cement the deal, Marvell issued to Google a warrant to purchase up to roughly 59 million shares of common MRVL stock at an exercise price of $206.58 per share. Roughly 1.4 million of the warrant shares vest quarterly over the coming year with the balance vesting quarterly though 2033, and here’s the kicker, with one tranche vesting for each $500 million in Marvell Custom Products revenue.

The math on 240 tracks multiplied by $500 million is $120 billion.

That’s a massive figure, especially when compared against the $11.6 billion in revenue Marvell is expected to deliver this year and the $16.8 billion in 2027.

However, the key as we see it is Google winning sufficient custom chip business to pull through the demand for Marvell. There are no guarantees here, but with Google following in the footsteps of Amazon (AMZN) to bring its custom chip business to third parties, we see the tie up as very positive for Marvell and its shares. And yes, part of that is because Google is now financially incentivized to use Marvell.

A few things as we think about the above:

First, estimates have Google generating around $3 billion in revenue this year from TPU-related infrastructure and around $25 billion in 2027. That is a sharp ramp and one that is likely not too far off from the one at Amazon. It also explains custom silicon efforts at Meta (META), Microsoft (MSFT), OpenAI and Anthropic to not only ramp capacity but keep a reign in on costs.

Second, we are seeing the usual “for one to win, another must suffer” reaction with MRVL shares up on the news while the ones for Broadcom (AVGO) are falling. Let’s remember that Broadcom has an agreement with Google for its core TPU development through 2031, which suggests that Marvell may not be replacing Broadcom, but rather its products will be used alongside the ones from Broadcom.

Bottom Line

The tie up with Google is certainly a positive for Marvell and its shares. Combined with comments shared during Amazon’s Q2 2026 earnings call, rising hyperscaler capex and ramping demand for networking, Marvell should deliver a very upbeat outlook when it reports its quarterly results on August 27. It also supports the longer-term view Marvell management discussed earlier this year.

It would, however, be presumptuous to automatically award $120 billion in revenue to Marvell. We realize some talking heads are making a big deal about the size of that potential revenue, but let’s not make the usual herd mistake and automatically assume something as a foregone conclusion. Let’s let those talking heads make that mistake.

We will continue to track not only the cloud revenue at Google and Amazon, but also comments about customer count, AI adoption and the like that should help us determine the velocity of customer chip demand and how that flows through to Marvell and Broadcom.

For now, we’ll maintain our $340 price target for MRVL shares and the $525 one for AVGO shares.

With AVGO shares under pressure on Wednesday, we will continue to track the technical set up for the iShares Semiconductor ETF (SOXX) as we discussed yesterday with you and the ETF’s 100-day moving average at $513.47. A successful test could lead us to pick up some additional AVGO shares for the Portfolio, but a move below the 100-day moving average means we’ll remain on the sidelines. Should we see AVGO shares fall into an oversold condition, that may lead us to nibble.

More Pro Portfolio

At the time of publication, TheStreet Pro Portfolio was long AMZN, AVGO, GOOGL, META, MRVL and MSFT.