According to the disclosed details, the core of this negotiation revolves around two new chips designed to significantly improve the efficiency of AI models. The first is the crucial "Memory Processing Unit" (MPU), designed to work in conjunction with Google's existing Tensor Processing Unit (TPU) to solve the memory bottleneck problem in AI computing; The second is a next-generation TPU optimized for handling AI inference workloads.
The report indicates that both parties aim to complete the MPU design and begin test production by 2027, which means Google is accelerating the construction of a more cost-effective vertically integrated hardware system to combat...NVIDIADominant position in the GPU field.
Wells Fargo BankIn his latest research report, analyst Aaron Rakers pointed out that if the deal with Google is finalized, it will be a "meaningful incremental positive factor" for Marvell. Rakers specifically emphasized that Marvell's advantage in this bid stems primarily from its recently launched Structera CXL solution. In a customer report, he wrote that this potential MPU order may be a demonstration of the strength of Marvell Structera CXL technology, which significantly improves computing efficiency in hyperscale data centers through rack-level memory pooling.
Currently, Marvell's custom XPU business coversAmazonandMicrosoftWhile Google's addition will significantly enhance its customer diversification capabilities, Rakers maintains its "overweight" rating on Marvell and its $135 target price.
Rakers added, “During our meeting, CEO Matt Murphy emphasized that the company’S Structera CXL solutions have secured design orders for three hyperscale data centers, focusing on leveraging CXL pooling technology to integrate existing memory capacity in their computing infrastructure. At the OFC show in mid-March, Marvell launched the Structera S 30260—a new 260-channel CXL switch that enables rack-level memory pooling and works with the company’S Structera A near-memory accelerator, Structera X memory expansion controller, and Alaska PCIe/CXL retimer.”
Despite the high market sentiment, industry analysts also pointed out that Google's move is more of a "supply diversification" strategy than a complete replacement of existing partners. Just a few days before this news broke,BroadcomThey have just secured a long-term design agreement with Google until 2031. The introduction of Marvell reflects Google's refined cost reduction efforts targeting specific "inference" segments, striving to make its TPU a more competitive general-purpose platform in the industry.
According to Investors.com estimates, as Google plans to expand into Anthropic and...GoalOnce the company licenses its TPU IP, its TPU business is expected to contribute more than $10 billion in high-margin licensing revenue by 2027, and Marvell is clearly trying to get a piece of this rapidly growing pie.
