Nvidia CEO Jensen Huang called Marvell Technology, Inc. (NASDAQ:MRVL) the “next trillion-dollar company” at Computex on June 2.
Alphabet Inc. (NASDAQ:GOOGL) has now given that prediction considerably more ammunition
Marvell disclosed on August 19 that it expanded its custom-silicon relationship with Alphabet Inc. (NASDAQ:GOOGL), covering products tied to Google’s TPU ecosystem, including AI inference accelerators, storage controllers, network-interface controllers, memory-interface controllers and near-memory computing. Google also received warrant to buy up to 58.97 million Marvell shares at $206.58 each, potentially worth about $12.2 billion. The eye-popping number is $120 billion.
Most of the warrants vest as Marvell records qualifying revenue from Google, with one tranche vesting for every $500 million through early 2033. If all 240 performance-based tranches vest, that implies roughly $120 billion of qualifying purchases. That is, of course, not guaranteed backlog and is more the revenue hurdle needed for full vesting.