Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions and spanning the data center core to network edge in the United States, Argentina, China, India, Israel, Japan, Singapore, South Korea, Taiwan, Vietnam, and internationally. The company develops and scales system-on-a-chip architectures, integrating analog, mixed-signal, and digital signal processing functionality. It offers a portfolio of ethernet solutions, including spanning controllers, network adapters, physical transceivers, and switches; single or multiple core processors; and custom application specific integrated circuits, interconnects, fibre channel adapters, and processors. The company also provides interconnect products, including pulse amplitude modulation, coherent and coherent-lite digital signal processors (DSPs), laser drivers, trans-impedance amplifiers, silicon photonics, co-packaged optics, linear pluggable optics chipsets, data center interconnect, active electrical cable DSPs and peripheral component interconnect express retimer solutions; fibre channel products comprising host bus adapters and controllers for server and storage system connectivity; storage controllers for hard disk drives and solid-state-drives; host system interfaces, including serial advanced technology attachment and serial attached SCSI, peripheral component interconnect express, compute express link switches, non-volatile memory express (NVMe), and NVMe over fabrics; and develops ultra accelerator linkTM switches and ethernet for scale-up networking switches. The company serves data centers, communications, and other markets. It offers its products through direct customers and distributors. Marvell Technology, Inc. was incorporated in 1995 and is headquartered in Wilmington, Delaware.
Country
Sector
Themes
Also in
Price· split & dividend adjusted
No price history for this asset yet.
News & notes movingMRVL
Artificial Intelligence▼
MaxLinear's AI Optical Growth Accelerates, Raises 2026 Revenue Outlook
MaxLinear is benefiting from the accelerating AI data-center optical transition, with Infrastructure revenues reaching roughly $85 million in the second quarter of 2026, up 145% year over year and representing about half of total revenues. The company's Keystone platform, a 5-nanometer, 100G-per-lane PAM4 DSP and SerDes, is ramping into high-volume production at major hyperscale customers for 400G and 800G deployments, offering nearly 40% lower power consumption than competing solutions. Strong orders and better visibility prompted MaxLinear to raise its 2026 optical data-center revenue expectation to $210-$230 million, with the more than $50-million increase entirely attributable to Keystone. The company is also preparing for the next generation with Rushmore, its 1.6T PAM4 DSP, which is sampling and undergoing customer qualification, with initial ramps expected in the second half of 2027. MaxLinear faces tough competition from Broadcom, whose AI semiconductor revenues reached $10.8 billion in second-quarter fiscal 2026, and Marvell, which expects interconnect revenues to grow more than 70% in fiscal 2027. MaxLinear's shares have appreciated 270.5% year to date, and the Zacks Consensus Estimate for its earnings is 56 cents per share, up 20 cents over the past 30 days, suggesting 300% year-over-year growth.
Marvell Technology heads into its fiscal second-quarter earnings report on August 27 with high market expectations, as the stock has become a bellwether for the AI ecosystem. For the quarter ended August 1, analysts expect revenue of $2.71 billion and earnings per share of $0.93. The bigger catalyst is likely to be management's guidance for fiscal 2027 and 2028, especially after the company announced a $12.2 billion deal with Google on August 19 to develop custom AI chips, which analysts at Stiefel estimate could generate $120 billion in revenue over seven years. The average price target from 44 Wall Street analysts is $266, representing an 11% upside. However, the stock trades at a trailing P/E of nearly 83 and over 24 times sales, leaving little room for error, and the Google deal includes a warrant for nearly 59 million shares, potentially diluting shareholders by nearly 7%.
Nvidia's AI data center market share may drop to 70%
Moor Insights & Strategy founder Patrick Moorhead predicts Nvidia's AI data center market share could fall from 90% to roughly 70% over the next two years, as the market more than doubles annually. Moorhead identifies Google's TPU as the top taker of unit share, benefiting companies like Broadcom and Marvell, followed by Amazon's Trainium, which underpinned Anthropic's model development. He also expects AMD to gain unit share with its new scale-up architecture, which is more similar to Nvidia's than previous designs. Regarding Bloomberg's report that OpenAI's custom chips with Broadcom outperformed Nvidia's current lineup in testing, Moorhead says he is not surprised, noting the power and performance of non-GPU architectures, but he emphasizes that GPUs offer more flexibility and longevity, while custom designs require frequent updates and cost between 200 and 500 million dollars each. Despite these challenges, Moorhead believes Nvidia's revenue won't be significantly impacted because the market is growing so fast, and in the long term, it will remain primarily a GPU world with custom inference chips for those who roll their own software.
Marvell Technology Reports Earnings Tomorrow: What to Expect
Marvell Technology, a designer of networking chips, is set to report earnings this Thursday after market hours. Last quarter, the company met analysts' revenue expectations with $2.42 billion in revenue, up 27.6% year on year, and provided strong guidance. For this quarter, analysts expect revenue to grow 35.1% year on year, a slowdown from the 57.6% increase recorded in the same quarter last year. Analysts have generally reconfirmed their estimates over the past 30 days, and Marvell rarely misses revenue expectations. Among its peers, Kulicke and Soffa reported a 123% revenue increase, beating estimates by 5.7%, while Semtech saw revenues up 32.7%, topping estimates by 4%. Marvell's stock is up 27.2% over the past month, with an average analyst price target of $269.28, compared to its current share price of $240.63.
Marvell Q2 Earnings Preview: AI Growth and Valuation in Focus
Marvell Technology is set to report its fiscal second-quarter earnings after the close on Thursday, August 27, with investors watching whether the AI-driven rally can continue. The company, a key supplier of custom AI silicon and data-center connectivity to hyperscalers like Amazon, Microsoft, and Google, has seen its stock surge 180% this year, though it remains over 25% below its all-time high. Analysts expect revenue of $2.71 billion, up 35% year over year, and adjusted EPS of $0.93, nearly matching the company's own guidance. More critical will be Marvell's outlook for continued data-center growth, as that segment already accounts for 76% of total sales. The company's expanded agreement with Alphabet for custom silicon tied to Google's TPU ecosystem underscores its broadening role, but competition from Broadcom, AMD, and Astera Labs remains intense. Despite a premium valuation at 17 times forward sales, Marvell projects revenue growth of about 40% in fiscal 2027 and 45% in fiscal 2028, with EPS expected to rise sharply. The stock carries a Zacks Rank #2 (Buy), but the high valuation leaves little room for error in the upcoming report.
Nvidia Customers Face 15% Price Hike as Google Spends $200 Billion
Nvidia has warned some of its largest customers that AI servers built around Grace Blackwell and Vera Rubin chips could cost more than 15% extra in early 2027 as memory prices climb. Alphabet is among the data center operators exposed to those increases, and it has committed $195 billion to $205 billion in capital spending this year on AI infrastructure. Google Cloud revenue grew 82% in the June quarter to $24.8 billion, and cloud backlog reached $514 billion. Marvell reported Q1 fiscal 2027 revenue of $2.42 billion, up 27.57% year over year, with data center accounting for 76% of the total, and CEO Matt Murphy said the custom chip business has a path to over $10 billion in revenue in fiscal 2029.
Dick's Sporting Goods shares plunged more than 27% after the retailer reported revenue of $5.59 billion, below the $5.65 billion expected by analysts polled by LSEG, citing a challenging footwear market. Dynatrace rose 3% after Morgan Stanley upgraded it to overweight, while Shift4 Payments gained nearly 4% on a Wells Fargo upgrade to overweight. Moderna rallied 13% after Wolfe Research upgraded it to peer perform, and Marvell Technology jumped 5% after Susquehanna and Rosenblatt raised price targets. Advanced Micro Devices gained 5% after Raymond James upgraded it to strong buy with a $641 price target, and Kura Oncology climbed almost 10% after its CEO disclosed buying 100,000 shares. Navitas Semiconductor rose 5% after announcing a $232.8 million deal to acquire Claros.
Morgan Stanley: Google AI Chip Boom Could Unlock $200 Billion
Morgan Stanley analyst Brian Nowak raised his estimates for Alphabet's in-house tensor processing unit chips, projecting the company could generate as much as $200 billion in revenue from TPUs over the next several years. The revision follows reports that Alphabet may supply about one million TPUs, representing roughly 1.3 gigawatts of capacity, for approximately $35 billion, implying pricing of about $27 billion per gigawatt. Nowak expects Google to sell about 0.3 gigawatts of TPU systems in the second half of 2026, followed by 3.2 gigawatts in 2027 and 4.2 gigawatts in 2028, which could produce $84 billion and $108 billion in related Google Cloud revenue in 2027 and 2028, respectively. The firm also pointed to Alphabet's expanded custom-chip work with Marvell, which may support higher TPU pricing and margins, and now assumes a 30% gross margin on TPU system sales, up from its previous 20% estimate.
Nvidia's Market Cap Could Double to $11 Trillion by 2030
Nvidia's market capitalization could nearly double to $11 trillion by 2030, driven by expansion into custom AI processors, optical networking, and server CPUs. The company's data center segment generated $75.2 billion in revenue in the first quarter of fiscal 2027, up 92% year over year and accounting for 92% of total revenue. Nvidia invested $2 billion in Marvell Technology to enter the custom AI processor market, which Bloomberg estimates could be worth $118 billion by 2033, and partnered with Ayar Labs to strengthen its co-packaged optics offerings. The company also expects $20 billion in revenue this year from its Vera server CPU, targeting a $200 billion addressable market. Assuming 15% revenue growth in fiscal 2030 and 2031, Nvidia's top line could reach $918 billion, and at 12 times sales—half its current multiple—its market cap would hit nearly $11 trillion.
GF Securities Picks Marvell and Intel as AI Chip Winners
GF Securities has identified Marvell Technology, Mediatek, and Intel as preferred semiconductor names amid a favorable outlook for custom AI chips and advanced packaging. Analyst Henry Huang expects Nvidia's share of TSMC's CoWoS capacity to remain stable in 2027, with GPU demand expanding alongside custom accelerators, and sees Nvidia's Vera Rubin platform gaining adoption at major cloud providers including Amazon and Alphabet. The firm expects Marvell's CXL and DPU businesses tied to Google to each contribute about $3 billion by 2028, with its MPU business generating a similar amount that year, and Marvell is also expected to participate in Amazon's Trainium 3 program with estimated contributions of about $1 billion in 2026 and $2 billion in 2027. For Intel, GF Securities raised its back-end revenue forecasts to $1.1 billion for fiscal 2027 and $7 billion for fiscal 2028, citing improving visibility across AI packaging programs.
Marvell Technology to Report Q2 Earnings on Aug. 27
Marvell Technology is scheduled to report second-quarter fiscal 2027 results after market close on Aug. 27, 2026. The company expects revenues of $2.7 billion, plus or minus 5%, while the Zacks Consensus Estimate is pegged at $2.71 billion, indicating year-over-year growth of 35.2%. Marvell anticipates non-GAAP earnings of 93 cents per share, plus or minus 5 cents, matching the Zacks Consensus Estimate of 93 cents, which represents a 39% increase year over year. Zacks Investment Research notes that the company's data center business is likely to have remained the primary growth driver, supported by continued investments in AI infrastructure and rising demand for semiconductor solutions. Year to date, Marvell shares have gained 179%, outperforming the Zacks Electronics – Semiconductors industry's growth of 27.5%.
Marvell's Google Deal and Custom AI Pipeline Counter Concentration Fears
Marvell Technology's customer concentration risk is overstated because the company serves all five major US hyperscalers, holds over 50 new custom AI opportunities, and carries a Google commercial agreement worth up to $120 billion through 2033. The Google deal is structured as a warrant tied to 240 distinct revenue tranches at $500 million each, incentivizing up to $120 billion in custom product purchases. Marvell's data center segment produced 76% of total revenue in Q1 FY2027, with management describing custom AI design activity at an all-time high across more than 10 customers. The company closed the Celestial AI acquisition on February 2, 2026, and XConn Technologies on February 10, 2026, adding photonic fabric and chiplet connectivity assets. Fiscal 2026 revenue was $8.195 billion, up 42.09%, with non-GAAP EPS of $2.84, up 81%, and Q1 FY2027 revenue of $2.418 billion, up 27.57% year over year. Marvell repurchased $2,040.1 million of stock in fiscal 2026 and another $200 million in Q1 FY2027, while guiding fiscal 2028 total-company revenue of approximately $16.5 billion with custom revenue more than doubling year over year. The company's custom revenue target of over $10 billion in fiscal 2029 makes its forward P/E of 58 more compelling than Broadcom or NVIDIA, according to the author.
Broadcom and Marvell Technology Report Divergent AI Silicon Results
Broadcom and Marvell Technology both reported quarterly results that highlight the scale gap in the custom AI silicon market. Broadcom posted fiscal Q2 revenue of $22.19 billion, up 47.87% year over year, with AI semiconductor revenue at $10.8 billion, up 143%, and CEO Hock Tan guided fiscal Q3 AI revenue to $16.0 billion. Marvell delivered record fiscal Q1 revenue of $2.418 billion, up 28%, with data center at 76% of total revenue, and CEO Matt Murphy raised the full-year outlook to nearly $11.5 billion for fiscal 2027 and approximately $16.5 billion for fiscal 2028. Broadcom trades at a 20x forward P/E with a $1.75 trillion market cap, while Marvell trades at 58x forward P/E with a $212.75 billion market cap after its stock surged 234% in a year.
Yuanta Securities noted that Marvell Technology reported first quarter fiscal 2027 results with total revenue of 2.418 billion US dollars, up 28 percent year on year, and normalized profit of 718 million US dollars, up 33 percent year on year, supported by strong AI demand, especially Custom XPU, 800G and 1.6T Optics for scale-out networking and high-speed Ethernet switches, which is expected to accelerate from the first quarter when revenue from 1.6T transceivers began to be recognized. Consensus expects normalized profit for fiscal 2027 to 2029 at 3.676 billion US dollars, up 49 percent year on year, 5.701 billion US dollars, up 55 percent year on year, and 8.623 billion US dollars, up 51 percent year on year, respectively, with Custom Silicon as the main driver from the ramp-up of XPU-attach programs entering mass production, alongside the Optics business expected to grow strongly from 1.6T solutions. The agreement with Google to co-develop TPU interconnect systems and the issuance of warrants tied to sales are expected to support long-term upside for the stock.
Hedge funds and mutual funds split on AI trade, Goldman says
Hedge funds and mutual funds took sharply different approaches to individual AI stocks during the second quarter, according to Goldman Sachs. Hedge funds bought Microsoft and Amazon while mutual funds reduced positions in both, and hedge funds cut exposure to Alphabet, Meta Platforms, Nvidia, Broadcom, Lam Research, Marvell Technology, Cisco Systems, Hewlett Packard Enterprise and Applied Materials. Mutual funds bought Advanced Micro Devices, Micron Technology and Sandisk while hedge funds reduced exposure to those stocks. Goldman identified 12 AI infrastructure stocks purchased by both groups, including American Electric Power, Bloom Energy, CoreWeave, Flex, NiSource, Seagate Technology, Talen Energy and Xcel Energy. The analysis covers 991 hedge funds with $5.4 trillion of gross equity positions and 504 large-cap active mutual funds with $4.6 trillion in equity assets.
Nvidia Earnings and Jackson Hole Speech to Set Market Direction
Markets this week will focus on Fed Chair Kevin Warsh's first major policy address at Jackson Hole and a cluster of mega-cap technology earnings. Wednesday brings an extraordinary data convergence with Q2 GDP revision, July Core PCE, durable goods orders, and crude oil inventories all due between 8:30am and 10:30am. Nvidia, CrowdStrike, and Salesforce report earnings Wednesday, while Marvell reports Thursday, testing AI infrastructure and semiconductor demand. Long-end Treasury yields and debt issuance pressures continue to constrain equity valuations amid economic uncertainty. The combination of Jackson Hole guidance, economic data, and mega-cap earnings will establish market direction heading into September volatility.
Marvell expands Google custom chip deal with warrant tied to $120 billion in purchases
Marvell Technology disclosed an expanded custom chip agreement with Alphabet's Google on August 19, 2026, and issued Google a warrant to buy up to 58.97 million Marvell shares at $206.58 per share, worth about $12.2 billion if fully exercised. Only about 1.4 million shares vest in the first year, with the rest unlocking in blocks for every $500 million in custom chip revenue Marvell books from Google from the third quarter of fiscal 2027 through fiscal 2033, requiring roughly $120 billion in purchases to unlock the full stake. Marvell will develop AI inference accelerators, storage controllers, networking hardware, and memory technologies for Google's TPU ecosystem, adding Google as a second major custom silicon supplier alongside Broadcom and giving Marvell a foothold with all three largest US cloud providers, including Amazon and Microsoft. Marvell shares rose about 10% to near $234 on the news, while Broadcom fell about 4% to 5%, though Broadcom retains its own Google agreement through 2031. Full exercise would dilute existing shareholders by about 6.3% to 6.7%, but analysts view the dilution as contingent on years of guaranteed sales, and Marvell reports quarterly results on August 27, where management commentary on Google demand will be closely watched.
Broadcom Falls 6.2% as Google Expands AI Chip Ties With Marvell
Broadcom shares dropped 6.2% after Google expanded its long-term partnership with Marvell Technology to co-develop additional accelerators and controllers for its AI hardware ecosystem. The move puts Broadcom's role as a core custom AI chip supplier under scrutiny, even as Broadcom explores a very large debt-financing package reportedly up to US$100.00 billion to back AI chip deals for Anthropic and others. Broadcom's existing Google agreement runs through 2031, and its pending Anthropic financing package means the key near-term catalyst remains AI backlog execution, while the main risk is rising leverage tied to very large AI funding deals. The proposed debt package of more than US$60 billion, potentially up to US$100 billion, tied to Anthropic and other AI customers, reinforces how central Broadcom aims to be in AI infrastructure but raises fresh questions about balance sheet risk if hyperscaler AI spending slows. Broadcom's narrative projects $243.8 billion revenue and $120.9 billion earnings by 2029, requiring 47.8% yearly revenue growth and about a $91.6 billion earnings increase from $29.3 billion today.
Marvell Technology Fair Value Rises After Google AI Partnership Expansion
Marvell Technology's modeled fair value has increased to US$259.66 from US$254.41, reflecting an updated price target following the expanded Google partnership and growing AI silicon exposure. Revenue growth is now set at 43.70% compared with 41.27% previously, while the modeled net profit margin is 28.80% versus 29.11% before. Analysts including UBS, BofA, KeyBanc, Stifel, Oppenheimer, Roth Capital, and B. Riley highlight demand tied to optical interconnect, networking, and custom XPU programs, with some estimates referencing cumulative opportunity of up to US$120b. Bearish voices such as Erste Group, Goldman Sachs, and Morgan Stanley flag customer concentration risk, premium valuation, and limited visibility on future custom silicon wins. The future P/E multiple is 43.95x compared with 44.65x in the prior view, and the discount rate is now 11.33% compared with 11.16% previously.
Wedbush says Marvell Technology's expanded partnership with Alphabet reinforces that custom silicon designers are well positioned as AI infrastructure spending accelerates. Marvell expanded its Google partnership on July 29 across products tied to Google's TPU ecosystem, including AI inference accelerators, storage controllers, network interface controllers, memory interface controllers and near-memory computing. Google also received a warrant on Aug. 18 to buy as many as 58.97 million Marvell shares at $206.58 each. The deal comes as Alphabet diversifies its AI-chip supply chain beyond Broadcom, while reports of potential future work with Advanced Micro Devices suggest Google is willing to use multiple semiconductor partners. Marvell's next major catalyst arrives Aug. 27, when the company reports fiscal second-quarter 2027 results, after generating record fiscal 2026 revenue of $8.20 billion, up 42%.
Marvell Grants Google $12.2 Billion Warrant to Buy Shares
Marvell Technology has granted Alphabet a warrant to purchase up to 58,970,907 shares at $206.58 per share, a deal valued at roughly $12.18 billion. The commercial agreement, disclosed August 19, covers AI inference accelerators, storage controllers, networking and memory-interface controllers, and near-memory computing tied to Google's TPU ecosystem, with a performance-based tranche linked to custom-product revenue through fiscal 2033. Marvell shares are up 179.61% year to date, and the company expects fiscal 2027 revenue near $11.5 billion and fiscal 2028 revenue near $16.5 billion, with custom revenue topping $10 billion in fiscal 2029. The warrant turns Alphabet from a customer into an aligned shareholder and validates Marvell's custom XPU strategy, though risks include customer concentration and an 80.61% year-over-year drop in GAAP net income.
Marvell Expands Google AI Chip Deal, Wedbush Sees Growth
Marvell Technology has expanded its partnership with Google on custom artificial intelligence chips, a move Wedbush analyst Matt Bryson views as evidence that demand for specialized silicon is broadening. The agreement, first announced in July, covers multiple custom semiconductor programs tied to Google's TPU ecosystem, including AI inference accelerators, storage and networking controllers, memory interfaces, and computing technologies placed near memory. Google also holds a warrant issued on August 18 to purchase up to 58.97 million Marvell shares at $206.58 each. Wedbush notes that Google is separately exploring potential custom-chip work with Advanced Micro Devices, which could be a meaningful opportunity. The expanded relationship is expected to strengthen Marvell's position in custom AI silicon and improve visibility into future semiconductor programs.
Broadcom Negotiating Over $60 Billion Debt for AI Chip Financing
Broadcom is negotiating more than $60 billion in fresh debt to fund an AI chip financing arrangement benefiting Anthropic and other customers, with the deal potentially swelling to as much as $100 billion. The borrowing traces back to a June agreement with Apollo Global Management and Blackstone to fund a $35 billion expansion of Anthropic's computing capacity, part of a partnership meant to enable more than 20 gigawatts of AI compute by 2028. Broadcom is guaranteeing part of a senior secured tranche that could run $60 billion to $70 billion, on top of a roughly $30 billion junior tranche, all funneled through a special purpose vehicle. The company's AI semiconductor revenue reached $10.8 billion in the second quarter, an annualized run rate near $43 billion, and management has said it has line of sight to more than $100 billion in AI chip revenue alone by 2027. Shares fell as much as 5.9% on Wednesday, August 19, after Marvell Technology disclosed a new custom chip agreement with Alphabet covering AI inference accelerators, storage controllers, and several other components, along with a warrant for nearly 59 million Marvell shares.
AMD Falls as Google Expands $120 Billion Custom-Chip Push
Advanced Micro Devices slid about 0.4% to $464.20 Thursday afternoon as investors reacted to Google and other hyperscalers expanding their custom-chip efforts. Marvell's warrants can fully vest if qualifying Google purchases climb to approximately $120 billion through fiscal 2033, signaling that cloud giants are pouring billions into their own AI silicon. AMD's second-quarter revenue hit $11.5 billion, including about $6.7 billion from data centers, while its multiyear OpenAI agreement could eventually give OpenAI an option to acquire roughly 10% of the company. The stock sits 70.38% above its $272.45 GF Value estimate and trades near 119 times earnings.
Marvell's Google Warrant Could Add $6.15 to Earnings Per Share
Marvell Technology drew fresh estimates following its warrant agreement with Alphabet's Google, with Barclays reiterating an Overweight rating and $275 price target and describing a potential revenue opportunity of $120 billion through fiscal 2033 if all warrants are exercised. Barclays estimates that at roughly $18.5 billion a year and about $6.15 of incremental earnings per share using a 35% operating margin for the ASIC business. Stifel reached the same $120 billion figure over roughly six and a half years. Barclays expects the revenue to be backend loaded, and notes the warrant tranches may not be met in full. The announcement also covers memory interface controllers and near-memory compute, which Barclays suggests could involve CXL, and Marvell already expects $1 billion of CXL custom XPU attach revenue in calendar 2028. JPMorgan reiterated Overweight at $240 and Raymond James Strong Buy at $235.
Moderna Shares Surge 177% on Positive Cancer Vaccine Trial Results
Moderna shares surged 177% after its cancer vaccine, developed with Merck, showed positive late-stage trial results. Marvell Technology shares rose 9.9% after announcing a new agreement with Alphabet to develop custom AI chips. Target shares rose 4.3% after reporting second-quarter 2026 earnings of $2.46 per share, beating the Zacks Consensus Estimate of $2.3 per share. Lowe's shares rose 2% after reporting second-quarter 2026 earnings of $4.4 per share, beating the Zacks Consensus Estimate of $4.22 per share.
Marvell Technology Jumps 8.2% on Google Warrant Deal
Marvell Technology shares jumped 8.2% after the company disclosed a commercial agreement granting Google parent Alphabet a warrant to buy roughly 7% of its outstanding shares. Under the deal, Google received a warrant for up to 58.97 million shares at an exercise price of $206.58, with the vast majority of the stake vesting only if Google drives significant business to Marvell. After an initial time-based tranche, the remaining shares vest in $500 million increments tied to eligible custom-products revenue, including AI inference accelerators and network controllers for Google's TPU roadmap. Marvell Technology is up 162% since the beginning of the year, but at $234.43 per share, it is still trading 25.9% below its 52-week high of $316.43 from June 2026.
Alphabet's $12.2 Billion Marvell Option Reshapes Its AI Chip Strategy
Alphabet has secured warrants to buy up to 58.97 million Marvell shares at $206.58 each, a position worth roughly $12.18 billion if fully exercised. Most of the warrants unlock only as Google hits purchasing targets through fiscal 2033, tying equity upside directly to future chip purchases. The partnership spans AI inference accelerators, networking, storage controllers, memory-interface controllers, and near-memory computing built around Google's TPU ecosystem. Broadcom remains a partner under a long-term agreement through 2031, with Marvell adding a second heavyweight supplier as Google Cloud's second-quarter sales surged 82% to $24.8 billion and backlog reached $514 billion. Alphabet shares traded near $344, about 37.15% above the GF Value estimate of $249.72.
Broadcom Falls 2% as Google Adds Marvell to AI Chip Bench
Broadcom shares fell more than 2% in premarket trading Wednesday after Google gave Marvell a much bigger role in custom AI chips, including warrants potentially worth $12.2 billion. Marvell jumped more than 11% on the news, while Wall Street saw Google seeking more suppliers for its AI budget. Broadcom already has a long-term agreement with Google through 2031, and its fiscal second-quarter AI semiconductor revenue rose 143% year over year to $10.8 billion. The risk is that the pie gets split more ways, giving Google more negotiating power and flexibility. Broadcom shares stood at $361.79 on Aug. 19 versus a GF Value estimate of $342.29, leaving the stock 5.7% above GF Value.
Google's $12.2 Billion Custom-Chip Deal with Marvell Pressures Nvidia
Google has expanded its custom-chip agreement with Marvell to cover AI inference accelerators and a wider stack of silicon supporting Google's TPU ecosystem, a move that pressures Nvidia's dominance in AI hardware. The deal includes warrants for Google to buy up to 58.97 million Marvell shares at $206.58 each, potentially worth roughly $12.18 billion. Nvidia shares held near $219.31 Wednesday morning while Apple, Tesla, Amazon, and Meta bounced harder, and chip stocks remained under pressure. Nvidia's fiscal first-quarter revenue rose 85% to a record $81.6 billion, with Data Center revenue up 92% to $75.2 billion, but the company carries a GuruFocus GF Score of 95 out of 100 with a glaring weak spot in valuation. Hyperscalers are increasingly building cheaper, specialized alternatives to Nvidia GPUs, and every workload that moves onto purpose-built silicon is one Nvidia must fight harder to keep.
Moderna, Merck surge on cancer vaccine trial success
Moderna and Merck shares surged after their personalized cancer vaccine showed positive results in a late-stage trial, with Moderna skyrocketing 120% and Merck jumping 10%. Pilgrim's Pride rallied 15% after JBS, which owns more than 80% of the chicken producer, bid to acquire the remaining stock. Gold miners jumped after the Treasury Department announced sharply higher government debt repurchases, sending yields lower and boosting gold, with the VanEck Gold Miners ETF up 9% and Coeur and Hecla each gaining more than 13%. Marvell Technology rose more than 7% after giving Google permission to buy a $12 billion stake as part of a custom chip development deal. Coinbase surged 11% as bitcoin popped more than 5% to about $68,000, while Lowe's gained over 3% despite cutting its full-year outlook to the bottom end of prior guidance. Target added 5% after beating second-quarter revenue expectations and hiking full-year guidance, helped by a $752 million tariff refund boost. La-Z-Boy tanked 16% after fiscal first-quarter adjusted earnings fell 9% and current-quarter revenue guidance missed FactSet consensus, while Mercury Systems slid more than 6% on mixed results. Estee Lauder rose more than 16% after fiscal fourth-quarter adjusted earnings and revenue beat estimates.
Wedbush Says AMD-Google TPU Collaboration Could Reshape AI Chip Landscape
Wedbush says a reported collaboration between Advanced Micro Devices and Google on a future tensor processing unit could mark a meaningful shift in the semiconductor landscape. SemiAnalysis reported that Google may use AMD to help design its 10th-generation TPU, drawing on AMD's CPU expertise as well as its packaging and networking capabilities. Wedbush analyst Matt Bryson said it would be noteworthy if Google collaborated with AMD versus Broadcom, Marvell, or Intel, adding that the speculation highlights the growing importance of ASIC design and reusable IP blocks. AMD's data-center revenue surged 107% year over year to $6.7 billion in the second quarter, driven by EPYC CPUs and Instinct GPUs. A confirmed design role would show AMD can monetize CPU IP, advanced packaging, networking and ASIC expertise alongside its existing accelerator business, potentially opening another route into hyperscaler AI spending.
Marvell Stock's Premium Valuation Outpaces Its Fundamentals
Marvell Technology's stock has returned 192% over the past year, but its operating results lag key competitors, creating a stark mismatch between price and performance. The chipmaker trades at 81.8 times earnings, second-highest in its peer group behind Advanced Micro Devices at 128.3, while its trailing twelve-month revenue growth of 34% ranks third and its operating margin of 16.4% is fourth out of five. Management projects revenue growth of approximately 40% this fiscal year and 45% in fiscal 2028, driven by AI infrastructure demand, with interconnect revenue expected to grow more than 70% and custom silicon to more than double. The company forecasts about $1 billion in prepayments to manufacturing partners this fiscal year to secure supply, underscoring execution risk tied to a few large custom chip programs for cloud customers.
Shares of Marvell Technology, FormFactor, and Applied Materials jumped in afternoon trading after Bloomberg reported that Anthropic told prospective investors its second-quarter revenue surged more than 14-fold to over $11.5 billion, up from $787 million a year earlier and $4.73 billion in the first quarter. The AI company also posted positive adjusted operating income for the first time, though Bloomberg noted the figures could still be revised. Reuters separately reported that Anthropic is projecting 2028 revenue of roughly $190 billion to $200 billion, fueling gains in memory and storage names. Commerce Secretary Howard Lutnick told The Wall Street Journal the Trump administration opposes Apple buying Chinese memory chips, a stance that would benefit Micron, Samsung, and SK hynix. Marvell Technology rose 5.8%, FormFactor gained 5.4%, and Applied Materials climbed 5.9%.
Nvidia's Spectrum-X CPO Switches Enter Mass Production
Nvidia has moved its Spectrum-X co-packaged optics switches into mass production, with GF Securities projecting shipments to surge from 15,000 units in 2026 to 100,000 in 2027. The ramp is part of Nvidia's push to capture more AI-system spending beyond GPUs, as networking becomes a critical bottleneck in large AI clusters. TSMC has substantially expanded its CPO testing and inspection capacity, notably adding Insertion 2/3 capacity, according to GF Securities analyst Alicia Xia. Nvidia's NVL576-based scale-up systems using CPO or near-packaged optics are expected to begin adoption in the second half of 2027. Amazon's Trainium 4 is also expected to adopt near-packaged optics and Nvidia's NVLink Fusion, potentially extending Nvidia's technology into custom AI infrastructure, benefiting suppliers including Lumentum, Coherent, Semtech, Marvell, and Tower Semiconductor.
AI Networking Stocks Rally as Mizuho Note Fuels Interconnect Demand
AI networking stocks surged on Monday after a Mizuho research note pointed to accelerating demand across the AI high-speed interconnect layer. Marvell Technology rose 7.8% to $239.33, Credo Technology gained 8.3% to $281.48, and Ciena climbed 5.18% to $451. The note, published Sunday, cited a strong VR200 ramp as positive for near-package optics, co-packaged optics, and NVIDIA's Spectrum-X, and flagged Dell, Credo, NVIDIA, Broadcom, and Lumentum as 2027 earnings beneficiaries. Mizuho also projected CoWoS advanced packaging capacity growth of more than 75% in 2027, which would ease supply constraints on Marvell's custom AI silicon programs. Recent 13F filings showed heavy institutional interest, including Gavin Baker's Atreides Management holding concentrated positions across Credo, Ciena, and Astera Labs.
Lumentum's AI Optics Rally: 1000% Gain and Why It Can Continue
Lumentum Holdings, recommended by 24/7 Wall St. at $83.85, now trades around $926 per share after its fiscal Q4 2026 earnings report showed revenue of $1.0063 billion, up 109.3% year over year, and non-GAAP EPS of $3.23 versus a $2.97 consensus. The company guided Q1 FY27 revenue to a midpoint of $1.25 billion, more than a quarter ahead of its own target model, and management said pump lasers are effectively sold out with a four-fold increase in shipments expected over the next several quarters and market share in the 70-80% range. Lumentum also said co-packaged optics demand from its largest customer, NVIDIA, is landing in the second half of 2027, and near-package optics is completely additive, expanding its total addressable market. Separately, Marvell Technology is seen as a key design partner for Microsoft's Maya 300 custom accelerator, which is reportedly targeting 300,000 chips in 2027, and Marvell management has told investors custom revenue is on track to more than double year over year in FY2028, tracking toward a long-term target of over $10 billion in custom revenue in fiscal 2029.
Nvidia Commits Billions to Photonics and Data Center Infrastructure
Nvidia is deploying its surging free cash flow into strategic investments, committing at least $6.5 billion to photonics companies including $2 billion each for Lumintum (LITE), Coherent Corporation (COHR), and Marvell Technology (MRVL), plus $500 million for Corning (GLW). The chipmaker also reportedly plans to invest up to $3 billion in privately held Lancium, an energy and data center infrastructure company backed by Blackstone, taking an initial 20% stake for $2 billion with a potential additional $1 billion tied to performance targets. Lancium owns the 1.2-gigawatt Lancium Clean Campus in Abilene, Texas, site of the $500 billion Stargate project. Nvidia's free cash flow has grown from $3.8 billion in fiscal 2023 to $96.67 billion in fiscal 2026, and the company is working with Blackstone, BlackRock, Apollo, Brookfield, Goldman Sachs, and KKR to mobilize over $500 billion in third-party capital for AI infrastructure.
AI Demand Lifts Marvell, MACOM, Micron, Western Digital, Semtech
Shares of Marvell Technology, MACOM, Micron, Western Digital, and Semtech jumped in afternoon trading after upbeat earnings and bullish forecasts from AI-related firms signaled robust demand for artificial intelligence technology. Super Micro Computer rallied after its earnings per share came in 84% higher than expected and it provided a revenue forecast that topped estimates, while CoreWeave gained after its sales forecast also exceeded expectations. The optimism spread globally, with Asian markets rising and South Korea's semiconductor exports surging 155% year-over-year in early August. Marvell Technology rose 4.5%, MACOM gained 5.4%, Micron jumped 6.9%, Western Digital added 4.1%, and Semtech climbed 6.9%.
Nvidia's networking business could help push its value to $7.5 trillion
Nvidia's data center networking revenue reached a record $14.8 billion in its fiscal 2027 first quarter, up 199% year over year, and the company's NVLink Fusion platform could let it supply networking for some custom AI processors. Networking revenue has climbed from $8.6 billion in fiscal 2024 to $13 billion in fiscal 2025 and $31.4 billion in fiscal 2026, and Nvidia captured 21.5% of data center Ethernet switching revenue in the first quarter of 2026, making it the market leader. Nvidia has expanded its partnership with Marvell Technology, under which Marvell will provide custom accelerators and networking hardware while Nvidia supplies NVLink interconnect, Spectrum-X switches, ConnectX adapters, and BlueField data processing units. Wall Street expects Nvidia's earnings to rise to about $12.90 per share in fiscal 2028 from about $9 per share in fiscal 2027, and if the stock keeps trading at roughly 24.1 times forward earnings, its market capitalization could approach $7.5 trillion, up from about $5.3 trillion today.