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Marvell gains analyst support on custom AI chip momentum with Google
Analyst Henry Huang expects three Marvell chip lines tied to Google to contribute about $3 billion each by 2028, adding to growth tied to Amazon Trainium chips.
Marvell Technology is seeing fresh bullish attention as analysts point to the chip designer's expanding custom AI work for major U.S. cloud companies. According to Yahoo Finance, GF Securities reiterated a favorable view of the stock and framed Marvell's growth outlook as closely linked to Alphabet's Google, including expectations for several Google-connected chip lines.
Yahoo Finance reports that analyst Henry Huang projects three Marvell chip lines tied to Google to each bring in roughly $3 billion by 2028. Huang also expects Marvell to play an increasing role in Amazon.com's Trainium chips, with Trainium revenue contributions seen at about $1 billion this year and $2 billion next year.
The positive view is also tied to a recent custom chip agreement with Google that Yahoo Finance says could allow the search giant to take a potential $12 billion equity stake in Marvell. Yahoo Finance adds that Huang expects the partnership to improve Marvell's odds of winning additional future chip work for Google.
Yahoo Finance notes that other Wall Street firms including Wells Fargo, Morgan Stanley, Susquehanna, and Rosenblatt Securities raised their Marvell price targets in close succession. The article also says Marvell had previously lost the design work for Amazon's next Trainium chips to a rival, a concern that the Google-linked momentum is now helping to offset.