Marvell’s expanded Google AI chip deal drives Citi to raise its stock target, with shares up 195% year-to-date.
Citi raised its price target on Marvell Technology (MRVL) ahead of the chipmaker’s Aug. 27 earnings report, citing strong demand for AI and data-center infrastructure. Shares have surged 195% year-to-date, fueled by a 10% jump this week after Marvell expanded its custom silicon partnership with Google.
The expanded agreement allows Google to purchase up to 58.97 million Marvell shares at $206.58 each, potentially totaling $12.2 billion. The deal covers AI inference accelerators, storage controllers, and network interface products tied to Google’s tensor processing unit ecosystem. Marvell’s role in Google’s AI infrastructure has grown as the tech giant diversifies its chip suppliers beyond Broadcom.
Wall Street has revised expectations upward, with analysts highlighting Marvell’s positioning in high-growth AI markets. The stock’s rally reflects broader semiconductor sector strength, driven by AI-driven demand.