Nvidia CEO Jensen Huang labeled Marvell Technology, Inc. (NASDAQ:MRVL) a potential “next trillion-dollar company” during his Computex keynote on June 2. Alphabet Inc. (NASDAQ:GOOGL) has now supplied substantial evidence to support that outlook.
On August 19, Marvell announced an expanded custom-silicon partnership with Alphabet, encompassing products integral to Google’s TPU ecosystem — AI inference accelerators, storage controllers, network-interface controllers, memory-interface controllers, and near-memory computing. As part of the agreement, Google received warrants to purchase up to 58.97 million Marvell shares at $206.58 each, a stake potentially worth roughly $12.2 billion.
The headline figure is $120 billion. Most warrants vest as Marvell records qualifying revenue from Google, with one tranche unlocking for every $500 million in purchases through early 2033. If all 240 performance-based tranches vest, it implies approximately $120 billion in qualifying orders.
That amount represents a revenue hurdle for full vesting rather than guaranteed backlog. Nonetheless, it signals that Google and Marvell have structured their relationship around a spending scale that would have seemed implausible for Marvell just a few years ago.
The Bull Case
Marvell already delivered record fiscal Q1 2027 revenue of $2.42 billion, up 28% year over year, and guided Q2 revenue to $2.7 billion, a roughly 35% increase. Nvidia invested $2 billion in Marvell in March. Now Google is linking potential equity ownership to billions in purchases. Two of the most critical companies in AI infrastructure are effectively validating Marvell’s role in custom compute and connectivity.
The $1 Trillion Hurdle
Reaching a trillion-dollar valuation remains a steep climb. Reuters Breakingviews estimates that even a smooth Google ramp could lift Marvell’s 2032 revenue from about $43 billion to roughly $62 billion. Applying Marvell’s pre-announcement forward revenue multiple of 4.4 times yields an equity value near $270 billion — well short of $1 trillion. Google also continues to work with Broadcom, and Morningstar analyst William Kerwin characterized the Marvell deal as a “growing pie” rather than evidence that Broadcom is being displaced.
Insider Monkey’s Q2 data showed hedge funds increasing exposure to MRVL, with holders rising to 95 from 79 in Q1. D.E. Shaw boosted its position by 658%. Short interest climbed to 35.83 million shares by July 31, about 4.1% of float — still far from a crowded bearish trade.
