Marvell Technology shares jumped after the chipmaker disclosed a custom AI infrastructure agreement with Google that includes a warrant for the search giant to acquire up to 58.97 million shares at $206.58 each. The arrangement ties Google’s potential equity stake, roughly 7 percent of Marvell, directly to its procurement of custom silicon, creating a revenue runway the company values at up to $120 billion through fiscal 2033.

The warrant is the signal

The structure is unusual. Google does not own the shares today; it holds a warrant exercisable at a fixed strike as it buys Marvell’s inference accelerators, storage and memory controllers, and networking gear. If Google hits the performance and purchase targets embedded in the deal, the warrant converts into a stake worth about $12.2 billion at the strike price. The $120 billion revenue figure is the cumulative ceiling across the decade, not a guarantee, and it is contingent on Google following through on the volume commitments that trigger the warrant.

Analysts reset the long-term model

RBC Capital Markets kept its Outperform rating and $360 price target, citing the agreement as a material expansion of Marvell’s addressable AI opportunity. The endorsement reflects a broader view that the custom silicon franchise, already anchored by Amazon and Microsoft, now has a third hyperscale anchor with a built-in purchase mechanism. The warrant aligns Google’s incentive to buy with Marvell’s incentive to deliver, a dynamic that does not exist in a standard supply agreement.

Earnings become the proof point

The market’s next test arrives August 27, when Marvell reports fiscal Q2 results. Consensus expects revenue of about $2.71 billion and adjusted earnings of $0.93 per share. The Google deal raises the bar for the outlook commentary: investors will look for evidence that AI-related demand is converting into sustained growth rather than a one-time design win. The warrant’s vesting schedule means revenue recognition will trail the headline number, so the tone of the forecast matters more than the print.