Marvell Wins Wall Street. Google Bets $12 Billion. Amazon Fears Fade.

Marvell Technology (MRVL) keeps winning over the analysts. GF Securities reiterated its favorable view on the stock, naming it a top pick within its positive outlook on custom AI chips. Analyst Henry Huang said much of the growth he sees comes from Alphabet's (GOOG) (GOOGL) Google. He expects three of Marvell's chip lines tied to Google to bring in around $3 billion each by 2028. Huang also sees Marvell playing a growing role in Amazon.com's (AMZN) Trainium chips, worth roughly $1 billion this year and $2 billion next year. GF was not alone. Wells Fargo, Morgan Stanley, Susquehanna, and Rosenblatt Securities all raised their Marvell price targets within a day of each other.

None of this comes out of nowhere. Just a few days back, Marvell signed a custom chip deal with Google that let the search giant take a potential $12 billion equity stake in the company. Huang expects that partnership to improve Marvell's odds of winning even more of Google's future chip work.

The Amazon side of the note also matters more than you think. Marvell had lost the design work for Amazon's next Trainium chips to a rival. It had been one of the main worries weighing on the stock, even as the rest of the business kept firing. GF's numbers point the same way. Huang expects Marvell to keep contributing to Trainium 3 and sees its position on the following generation strengthening after the Celestial AI deal. Billions in expected Trainium revenue is not what losing the customer would look like.

The Milestone That Changes Marvell's Story

With the Google deal, Marvell now designs custom AI chips for all three of the largest U.S. cloud companies, Amazon, Microsoft (MSFT), and Google. No other chip designer can claim that. For years, Marvell was seen as the clear number two to Broadcom in this space. Landing all three hyperscalers could change that story.

The Google partnership might be the most reassuring deal for investors. Google agreed to buy Marvell shares tied to the amount it purchases through 2033, going well beyond an ordinary supply deal. A customer taking an equity stake to lock in a supplier says a lot about Marvell's importance to its plans.