Google’s $12B Warrant Elevates Marvell’s AI Chip Ambition
Alphabet’s $12.18 billion warrant to buy Marvell shares turns Google from customer into an aligned equity holder and validates Marvell’s AI-focused XPU strategy. Bulls see meaningful upside with a target around $288–$354 over the next 12–24 months as data-center AI demand and the TPU ecosystem expansion support growth, helped by near-term revenue guidance (~$11.5B in fiscal 2027 and ~$16.5B in 2028). However, MRVL trades at a rich forward P/E versus peers Broadcom and NVIDIA, and risks include customer concentration and hyperscaler roadmaps that could influence the AI hardware roadmap.