Marvell also raised its revenue forecast for the fiscal year 2028 to approximately $20 billion, exceeding Wall Street's expectations, due to the accelerating demand for custom chips, networking, and data center infrastructure. Marvell disclosed in documents submitted to the U.S. Securities and Exchange Commission (SEC) about an expanded partnership with Google, which covers custom products related to the Google TPU ecosystem, including inference accelerators, network controllers, and near-memory computing.

Google could become a larger customer

The largest long-term figure is 120 billion US dollars.

If the performance targets are achieved, the expanded agreements between Marvell and Google could result in cumulative sales reaching this scale by the fiscal year 2033. Google also obtained warrants to purchase nearly 59 million shares of Marvell at $206.58 per share, linking a portion of this transaction to the future performance of Marvell.

Coinpaper previously pointed out that although the greatest contribution to revenue from this transaction is not expected to be realized until later in this decade, it has already become a core factor in the valuation of Marvell.

New forecasts give investors a clearer view of this opportunity: Marvell now expects that by the fiscal year 2029, revenue from custom chips will reach $12 billion, exceeding the previously set target of $10 billion.

Customized chips are becoming one of NVIDIA's largest alternative options.

Wider industry transformations are becoming increasingly important.

Google, Meta, Amazon, and other large-scale cloud service providers are developing proprietary accelerators optimized for specific workloads, especially inference tasks. This presents an opportunity for suppliers such as Marvell and Broadcom to capture spending that might otherwise have gone towards NVIDIA's general-purpose GPU.

Marvell achieved data center revenue of approximately $2.17 billion in the latest quarter, a year-on-year increase of 46%, and this business segment accounts for nearly 80% of total sales. Its latest financial report shows how rapidly the company is transforming into an AI infrastructure enterprise.

The competition for this opportunity is also intensifying. Broadcom expects its AI semiconductor revenue to reach approximately $115 billion in 2027 and $230 billion in 2028.