JPMorgan Sees $120B Revenue Opportunity in Marvell-Google AI Chip Deal
MRVL has more than doubled off its 52-week low of $61.44.
Summary
JPMorgan analyst Harlan Sur reiterated Overweight on Marvell and quantified the Google custom chip agreement at up to $120 billion in cumulative revenue through fiscal 2033, implying roughly $19.2 billion annually. That dwarfs current Wall Street estimates of $11.5 billion for fiscal 2027 and $16.8 billion for fiscal 2028. Sur's model shows a path to about $11 per share in calendar 2028 earnings versus the $9.52 consensus. The warrant structure—240 tranches vesting per $500 million in associated revenue—does not guarantee sales, but JPMorgan believes a significant portion is incremental. Shares rose 1.96% to $241.91 on the news, building on yesterday's initial pop after the agreement was disclosed.
At the time of this announcement, MRVL was trading at $244.63 on NASDAQ in the Technology sector, with a market capitalization of approximately $214.2B. The 52-week trading range was $61.44 to $329.88. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.