Oppenheimer Reiterates Outperform on Marvell, $250 PT

Oppenheimer analyst Rick Shafer reiterated an Outperform rating and $250 price target on Marvell (NASDAQ: MRVL) on August 20, 2026, following the extended partnership with Google.

“Marvell and Google disclosed an expanded partnership on Wednesday.

The expanded partnership covers much of MRVL’s DC AI platform, including custom accelerators, storage controllers, network controllers, memory controllers, and near-memory compute.

The deal extends MRVL’s existing GOOG relationship, adding a major XPU partner with a leading frontier LLM.

GOOG TPU would bring MRVL’s large custom AI ASIC customer count to three, including AWS Trainium and MSFT Maia.

In our view, this deal further validates mgmt.’s expectation for custom AI ASIC (XPU) sales to double next year (to $4B+) before increasing to $10B+ in CY28.

The deal includes warrants for up to 59M MRVL shares at $206.58 strike or ~$12B if milestones met/fully exercised. Full vesting implies $120B in cumulative GOOG purchases over ~7 years.

We believe AVGO remains GOOG primary TPU partner, with MTK and MRVL likely working on new SKUs.

Along with GOOG TPU, AVGO is ramping (at least) six other major projects, including META, OpenAI, and Anthropic.

These projects translate represent up to 10GW ($125B +/-, mix dependent) of compute next year (>2x this year). We see potential for AVGO to ship up to 30GW of compute in CY28.

AVGO’s existing 5-year LTA with GOOG (signed April 2026) for next-gen TPU runs through 2031. We believe it calls for annual revenue step-ups and don’t expect TPU to become a drag in the AVGO model.

We look for greater detail surrounding the deal when MRVL reports F2Q (July) results Thursday 8/27. We remain buyers of MRVL and AVGO ahead of likely upside results/outlook in the coming weeks.”

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