The artificial intelligence boom keeps reshaping semiconductors. Hyperscalers now spend billions of dollars on custom chips to slash costs and lift performance, and the custom ASIC market for AI data centers is projected to reach $118 billion by 2033 at a 27% compound annual growth rate.
In this surge, Marvell Technology (NASDAQ:MRVL | MRVL Price Prediction) is emerging as a quiet but critical partner. Its data center revenue already hit a record $6.1 billion in fiscal 2026, driven by custom silicon that scaled to a $1.5 billion annual run-rate across 18 cloud-provider design wins. Two fresh deals — one signed with Nvidia (NASDAQ:NVDA) and one in active talks with Google — now pull Marvell deeper into the AI ecosystem and give retail investors a clear, data-backed case to consider the stock today.
Google’s TPU Negotiations Expand Marvell’s Custom-Silicon Pipeline
FundaAI’s report this morning says Google is actively negotiating TPU development projects with Marvell, where the company would act in a design-services role similar to MediaTek’s. Discussions also cover a dedicated LLM inference chip optimized for large-language-model workloads.
This comes just days after Google extended its long-term TPU and networking agreement with Broadcom (NASDAQ:AVGO) through 2031. Google is simply diversifying suppliers and tapping Marvell’s expertise in high-speed interconnects to optimize cost and performance.
For Marvell, even early-stage talks signal meaningful upside. The company’s custom ASIC business already contributes roughly $1.5 billion in annualized revenue today. A Google win would layer on top of existing design wins with Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and four other major clouds. Bloomberg’s market-share model gives Marvell a realistic shot at 20% to 25% of the $118 billion ASIC opportunity, which would translate to $23.6 billion to $29.5 billion in annual revenue from this segment alone by the early 2030s. That is more than triple the company’s total fiscal 2026 revenue of $8.2 billion.
Nvidia’s $2 Billion Investment Locks Marvell Into the AI Factory
These Google talks build directly on a signed deal announced last month between Nvidia and Marvell that saw Nvidia invest $2 billion in Marvell and form a strategic partnership through NVLink Fusion. Marvell will design custom XPUs and NVLink-compatible scale-up networking that plugs straight into Nvidia’s rack-scale AI architecture alongside GPUs, Vera CPUs, NICs, and switches. The two companies are also collaborating on silicon photonics for optical interconnects.
Nvidia called the move an expansion of its AI ecosystem that gives customers more flexibility while keeping Nvidia’s interconnect at the center. For Marvell, the $2 billion cash infusion strengthens the balance sheet (the company ended the prior quarter with $2.64 billion in cash) and cements its role as a complementary player rather than a pure competitor. The partnership accelerates Marvell’s ramp in AI communications and AI-RAN, markets that analysts already project will drive the bulk of its future growth.
The Numbers Show a Company Built for AI Acceleration
Marvell’s full-year revenue reached a record $8.2 billion, up 42% year-over-year. Data center revenue alone grew 21% in the fourth quarter to $1.65 billion, as adjusted gross margin expanded to 59% and free cash flow for the trailing 12 months stood at $1.4 billion. Trailing earnings came in at $3.07 per share, producing a P/E ratio of 41.7 times. The forward P/E sits under 25 times, generating a deeply discounted PEG ratio of just 0.66.
Compare that to peers. Broadcom, for example, delivered solid AI growth but trades at a higher forward multiple, while Marvell’s custom-silicon momentum has outpaced expectations. Revenue growth of 42% in fiscal 2026 beat the broader semiconductor sector’s roughly 10% average. Operating leverage is working: GAAP net income for the year hit $2.67 billion.
Granted, risks remain. The Google talks are not yet a signed contract, and the stock’s valuation leaves little room for execution slips. Competition from larger players like Broadcom and Nvidia itself is real. That said, Marvell’s dual positioning — inside Nvidia’s ecosystem and potentially alongside Google’s TPUs — gives it two distinct paths to capture AI spending.
Key Takeaway
Both the Nvidia investment and the Google negotiations absorb Marvell deeper into the AI market as a key, critical partner. With fiscal 2026 revenue already up 42% and custom silicon on a clear multi-billion-dollar trajectory, the setup favors long-term holders.
Smart investors can buy Marvell Technology stock now for exposure to the custom-ASIC boom, as the next two quarters should confirm that these design wins convert to revenue. The data supports confidence in Marvell, not speculation.
