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Marvell's custom-silicon deal with Google locks in a major customer and could be worth up to $120 billion of revenue. Signed July 29, it covers AI inference accelerators, storage, network and memory interface controllers and near-memory compute tied to Google's TPU ecosystem. Google gets warrants for up to 58.97 million shares at $206.58, most vesting one tranche per $500 million of discretionary purchases, so the full amount is a very high milestone, not guaranteed revenue. x.comÂ
Marvell's Structera CXL line could become a strong second growth curve, moving it from data movement into memory expansion. Its hardware compression runs at line rate, transparently doubling usable memory without extra DRAM, saving customers real money and giving Marvell strong pricing power. Strategic Market Research sees CXL components growing from $1.9B in 2024 to $12.3B by 2030; a 20-30% share could add $1-3B a year from 2027-2030. Compression only eases, not breaks, the memory wall. x.comÂ
Marvell's neutrality lets it win custom silicon across all major US hyperscalers, but those wins should be sized net of the equity they hand back. Its Google deal on TPU-ecosystem chips took share from Broadcom, while Amazon's new custom silicon pact with Qualcomm shows neutrality cuts both ways. Google's warrant over 58.97M shares vests per $500M of purchases, so each $9.9 Google spends earns $1 of Marvell equity. Vesting starting in fiscal Q3 2027 would show the structure works. x.comÂ
Marvell's custom AI silicon business is scaling very fast after Google struck a deal with it for custom chips covering AI, networking and memory, including an equity stake in Marvell. Stifel says the deal could generate up to $120B of revenue over about seven years, far above Marvell's current annual run rate. x.com x.comÂ
Marvell's potential Lumentum acquisition may fail to increase per-share value because the added profits may not cover dilution and financing costs. A simplified calculation using reported market values implies roughly 38%-45% more shares, requiring about 45% more combined net profit to preserve EPS; debt would add interest and repayment pressure. If the price already reflects future growth, a control premium and possible customer concerns add risk. x.comÂ
Marvell is networking its way into every hyperscaler through warrant deals, now giving Alphabet options to buy $12.2B of the company. The Google deal covers processors, storage and networking technologies used with TPUs and could translate into about $120 billion of revenue through 2033. Marvell also has separate warrants with Amazon tied to photonic fabric purchases after its Celestial acquisition, recalling Jensen Huang's call that Marvell could be the next $1T+ company. x.comÂ
Google's warrant for almost 59 million Marvell shares, tied to what could be $120 billion of custom chip revenue, is marvelous news for Marvell. Per the quoted report, the expanded partnership covers AI inference accelerators, storage, network and memory interface controllers and near-memory compute for Google's TPU ecosystem. x.comÂ
Marvell's strong quarter was already priced in, so a sell-the-news decline is likelier. Q2 revenue rose 37% to $2.739B, data center revenue 46%, and Q3 guidance of $3.15B beat estimates; management sees custom silicon revenue more than doubling in FY28 and a path to about $18B of FY28 revenue. But the Google partnership and AI growth were largely traded ahead, and the stock never broke its rising channel's top. Long term, it is still a good company to add to at better prices before the midterms. … Show more
Marvell looks interesting at less than 30x calendar-2027 EPS against expected 60-70% annual EPS growth, but overpaying for Lumentum could drive its shares lower. Marvell could pay up to $110B, roughly a 30% premium; the stock-versus-debt mix is unclear, and Lumentum holders might own a third of the combined company. If the deal falls apart, Marvell could rise 10-12%. x.comÂ
Marvell's connectivity and custom AI silicon support raised revenue targets of about $12bn for FY27 and $18bn for FY28, even as shares fell 7.8% after hours on high expectations. F2Q revenue of $2.74bn rose 37% year over year and F3Q guidance of $3.15bn implies 50% growth. Management guides custom ASIC growth above 100% in FY28, with a path to $16bn+ by FY29 versus its ~$10bn, helped by a multi-year Google deal. AI clusters needing ~10x more bandwidth favor 1.6T optics. Buy, $290 target. x.com … Show more
Marvell's ambitious long-range outlook is encouraging about hyperscaler and AI-lab spending plans, but hitting it depends on AI revenue and token consumption soaring through decade's end. Even if its FY28 estimates rise again, Marvell trades at a healthy premium to Nvidia and Broadcom, especially on a GAAP basis, and those two are growing fast too. x.comÂ
The market may still be underestimating Marvell as it becomes a key supplier of custom silicon and connectivity for the AI build-out. At its Investor Day, Marvell put its addressable market at about $400 billion by 2030, targeted about $20B of FY28 revenue and said revenue could reach $70-90B by FY31. Last quarter revenue rose 37% to $2.74B on AI and data-center demand, and Nvidia's Jensen Huang reportedly called Marvell the next trillion-dollar company. x.com x.comÂ
