Marvell Technology (MRVL) shares moved higher after the semiconductor company disclosed a major custom chip partnership with Alphabet’s Google division that could generate as much as $120 billion in revenue by fiscal 2033.

The stock rose about 3% on the announcement, trading near $235.40. The agreement centers on Marvell’s data center artificial intelligence infrastructure, including custom accelerators, storage control systems, network controllers, memory management units, and near-memory computing solutions.

The deal adds Google’s Tensor Processing Unit (TPU) to Marvell’s growing list of custom AI chip partnerships, alongside existing relationships with Amazon Web Services Trainium and Microsoft Maia. Google’s TPUs are its in-house line of AI accelerators, and the agreement reflects a broader shift among cloud providers toward custom silicon—designed with suppliers such as Marvell, Broadcom, and MediaTek—to run AI workloads alongside Nvidia’s widely used GPUs.

Under the arrangement, Google received warrants that allow it to buy up to 58.97 million MRVL shares at an exercise price of $206.58 per share. If fully exercised, the warrants would be worth about $12.18 billion. Full vesting depends on Google reaching $120 billion in total procurement from Marvell over roughly seven years, through fiscal 2033. Tying equity warrants to procurement commitments has become a recurring feature of the AI supply chain; in late 2025, AMD granted OpenAI warrants for up to 160 million shares that vest against GPU deployment milestones.

Oppenheimer kept its Outperform rating and $250 price target on MRVL. The firm said Broadcom remains Google’s primary TPU partner, while Marvell and MediaTek are likely focused on next-generation products.

Wall Street’s response

Stifel analyst Tore Svanberg reiterated a Buy rating and a $350 price objective, implying about 47.5% upside from current levels. He said the Google partnership shows “significant progress and substantial growth” in Marvell’s custom semiconductor business.

Svanberg said he has been watching Marvell’s Custom division for signs of XPU Attach traction, a term referring to custom semiconductors tied to artificial intelligence infrastructure. He said the Google agreement supports the view that meaningful progress is taking place.

William Blair analyst Sebastien Naji also maintained a Buy rating. He said the deal could expand Marvell’s role in Google’s AI TPU programs through fiscal 2033, contributing revenue across AI semiconductors, compute, and storage. Naji added that the warrant structure points to strong long-term revenue potential and gives Google more incentive to deepen its relationship with Marvell.

UBS raised its price target to $310 while keeping a Buy rating. Barclays reiterated an Overweight rating and a $275 target, saying the deal could add about $18.5 billion in annual revenue and $6.15 in earnings per share if the warrants are fully exercised.

JPMorgan maintained an Overweight rating with a $240 target, and Raymond James kept a Strong Buy rating with a $235 target.

Outlook for MRVL

Oppenheimer said the partnership could support management’s forecast that custom AI chip revenue will double in the coming year to more than $4 billion, before topping $10 billion by 2028.

Marvell has reported 34% revenue growth over the trailing 12 months, driven by its artificial intelligence business. Data center silicon has become the company’s largest business as hyperscale AI infrastructure spending scales.

The company is scheduled to report second-quarter fiscal 2026 earnings on Thursday, August 27, 2026, a report that will offer an early read on how the Google agreement factors into management’s outlook.

The Street’s consensus rating for MRVL remains Strong Buy, based on 23 Buy ratings and five Hold ratings issued over the past three months. The average price target is $274.04, implying 15.5% upside from current trading levels.