Nvidia CEO Jensen Huang called Marvell Technology, Inc. (NASDAQ:MRVL) the “next trillion-dollar company” at Computex on June 2. Alphabet Inc. (NASDAQ:GOOGL) has now given that prediction considerably more ammunition.
Marvell disclosed on August 19 that it expanded its custom-silicon relationship with Alphabet Inc. (NASDAQ:GOOGL), covering 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 warrant to buy up to 58.97 million Marvell shares at $206.58 each, potentially worth about $12.2 billion.
The eye-popping number is $120 billion. Most of the warrants vest as Marvell records qualifying revenue from Google, with one tranche vesting for every $500 million through early 2033. If all 240 performance-based tranches vest, that implies roughly $120 billion of qualifying purchases.
That is, of course, not guaranteed backlog and is more the revenue hurdle needed for full vesting. But it still tells investors something important: Google and Marvell have structured the relationship around a scale of spending that would have sounded absurd for Marvell only a few years back.
The Bull Case
Marvell Technology, Inc. (NASDAQ:MRVL) already posted record fiscal Q1 2027 revenue of $2.42 billion, up 28% year over year, and guided Q2 revenue to $2.7 billion, up roughly 35%. Nvidia also invested $2 billion in Marvell in March. Now Google is tying potential equity ownership to billions of dollars of purchases. Two of the most important companies in AI infrastructure are effectively validating Marvell’s role in custom compute and connectivity.
The $1 Trillion Problem
The trillion-dollar case is still much harder. Reuters Breakingviews estimates that a smooth Google ramp could lift Marvell’s 2032 revenue from roughly $43 billion to about $62 billion. Applying Marvell’s pre-announcement 4.4-times forward revenue multiple produces an equity value around $270 billion, nowhere close to $1 trillion. Google also continues working with Broadcom, and Morningstar analyst William Kerwin called the Marvell deal a “growing pie” rather than evidence that Broadcom is being displaced.
Insider Monkey’s Q2 data showed hedge funds loading up on MRVL, with Q2 hedge fund holders numbered at 95, up from 79 in Q1, with D.E. Shaw increasing its position in Marvell by a massive 658%, Short interest rose to 35.83 million shares by July 31, about 4.1% of float, still far from a crowded bearish trade.