Amazon's $200 Billion Capital Expenditure Plan for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MRVL?
Source: NASDAQ.COM
- Significant Capital Expenditure Increase: Amazon plans to boost its capital expenditures to $200 billion in 2026, representing a nearly $70 billion increase from 2025, reflecting the company's strong commitment to cloud computing and AI investments aimed at solidifying its market leadership.
- Custom Chip Business Growth: Amazon's custom chip business is now running at over $10 billion annually and growing at a triple-digit percentage rate, particularly with surging demand for Trainium chips, which is expected to be fully supplied by mid-2026, enhancing the company's competitive edge in the AI sector.
- Partnership with Marvell: Amazon has solidified a five-year agreement with Marvell to design and supply its Trainium chips, and despite Marvell facing market challenges, its networking chip business remains a significant revenue source, indicating potential in the AI accelerator market.
- Optimistic Market Outlook: Despite competitive pressures, Marvell forecasts a substantial increase in custom AI accelerator revenue by fiscal 2028, aligned with the design progress of Microsoft's Maia 300 chip, suggesting that the company still presents a strong investment opportunity in the rapidly evolving custom silicon solutions market.
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Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to rise
30 Analyst Rating
22 Buy
8 Hold
0 Sell
Moderate Buy
Current: 79.090
Low
85.00
Averages
120.12
High
156.00
Current: 79.090
Low
85.00
Averages
120.12
High
156.00
About MRVL
Marvell Technology, Inc., together with its subsidiaries, is a supplier of data infrastructure semiconductor solutions, spanning the data center core to network edge. The Company is engaged in the design, development, and sale of integrated circuits. Its product solutions serve various end markets: data center, enterprise networking, carrier infrastructure, consumer, and industrial. Its product offerings include CXL, Data Processing Units, Security Solutions, Coherent DSPs, Coherent-lite DSPs, Data Center Switches, DCI Optical Modules, Enterprise Switches, Ethernet Controllers, Ethernet PHYs, PCIe Retimers, Linear Drivers, PAM DSPs, Transimpedance Amplifiers, Fiber Channel, HDD, Storage Accelerators, and SSD Controllers. The Company develops semiconductor solutions tailored to individual customer specifications that deliver system-level differentiation for artificial intelligence, data center, compute, networking, carrier, storage, aerospace, and defense applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Marvell Technology Reports Record Earnings Amid Valuation Concerns
- Record Earnings: Marvell Technology reported record earnings as of February 9, 2026, showcasing its significant exposure in the AI data center sector, although valuation concerns persist in the market.
- Execution Risk Analysis: The analysis highlights that despite strong performance, execution risks could impact future growth, prompting investors to monitor the management's strategic execution capabilities and market reactions closely.
- Celestial AI Acquisition: The acquisition of Celestial AI is viewed as a crucial move to enhance Marvell's AI capabilities, expected to bolster the company's competitiveness in the rapidly evolving AI market.
- Future Growth Potential: Despite valuation concerns, analysts believe the company has the potential to unlock the next phase of growth through effective strategic execution and market adaptability, particularly in the AI and data center sectors.
See More
Amazon's 2026 AI Spending Plans Surprise Investors
- AI Spending Plans: Amazon plans to increase its artificial intelligence spending to $200 billion by 2026, a nearly $70 billion increase from 2025, indicating a strong commitment to AI investment that could further solidify its leadership in the cloud computing market.
- Custom Chip Business Growth: Amazon's custom chip business within AWS has surpassed a run rate of $10 billion and continues to grow at a triple-digit percentage rate year-over-year, highlighting the company's increasing competitiveness in AI accelerators and processors.
- Partnership with Marvell: Amazon has signed a five-year agreement with Marvell Technology to secure the supply of its Trainium chips; although Marvell's stock has struggled, its networking chip business remains a significant growth area in data centers.
- Optimistic Market Outlook: Despite competition with Microsoft, Marvell anticipates a substantial increase in custom AI accelerator revenue by fiscal 2028, and its recent acquisition in AI interconnect chips suggests strong potential in the rapidly evolving data center market.
See More
Amazon's $200 Billion Capital Expenditure Plan for 2026
- Significant Capital Expenditure Increase: Amazon plans to boost its capital expenditures to $200 billion in 2026, representing a nearly $70 billion increase from 2025, reflecting the company's strong commitment to cloud computing and AI investments aimed at solidifying its market leadership.
- Custom Chip Business Growth: Amazon's custom chip business is now running at over $10 billion annually and growing at a triple-digit percentage rate, particularly with surging demand for Trainium chips, which is expected to be fully supplied by mid-2026, enhancing the company's competitive edge in the AI sector.
- Partnership with Marvell: Amazon has solidified a five-year agreement with Marvell to design and supply its Trainium chips, and despite Marvell facing market challenges, its networking chip business remains a significant revenue source, indicating potential in the AI accelerator market.
- Optimistic Market Outlook: Despite competitive pressures, Marvell forecasts a substantial increase in custom AI accelerator revenue by fiscal 2028, aligned with the design progress of Microsoft's Maia 300 chip, suggesting that the company still presents a strong investment opportunity in the rapidly evolving custom silicon solutions market.
See More
US Stocks Decline Amid AI Outlook Concerns
- Market Decline: The S&P 500 Index fell by 0.44%, the Dow Jones by 0.57%, and the Nasdaq 100 by 0.66%, reflecting market concerns over the outlook for artificial intelligence, particularly impacting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Weekly initial jobless claims dropped to 206,000, a five-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, suggesting economic pressures that could affect market confidence.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth projected at 8.4%, providing some support for the market, although overall sentiment remains cautious.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 1% to a three-week high due to U.S. military buildup in the Middle East, heightening inflation concerns and potentially increasing expectations for Fed rate hikes.
See More
OpenAI CEO Highlights Remarkable Progress of Chinese Tech in AI
- Remarkable Progress: OpenAI CEO Sam Altman highlighted in a CNBC interview that China's advancements in artificial intelligence are 'remarkable,' particularly in the race against the U.S. to develop artificial general intelligence (AGI), showcasing strong technological capabilities.
- Competitive Frontier: Altman noted that while Chinese tech companies are nearing the frontier in some areas, they lag in others, indicating a potentially uneven development that could impact the global tech competition landscape.
- Societal Technology Rollout: As China accelerates the rollout of AI technologies across various societal sectors, Altman's comments underscore China's significance in the global tech ecosystem, which may attract more investment and collaboration opportunities.
- International Cooperation Potential: Altman's remarks not only reflect recognition of China's tech progress but may also lay the groundwork for future U.S.-China cooperation in AI, fostering technology sharing and innovation.
See More
Meta Expands Partnership with Nvidia for AI Chip Deployment
- Expanded Collaboration: Meta has announced a new deal with Nvidia to deploy millions of AI chips across U.S. data centers, marking a significant upgrade in their technology partnership and is expected to further propel Meta's advancements in AI.
- Investment Commitment: Meta plans to invest $600 billion in the U.S. by 2028 for data centers and infrastructure, including the construction of its two largest AI data centers, Prometheus and Hyperion, demonstrating a long-term commitment to AI technology.
- New Technology Deployment: The partnership will see Meta independently deploy Nvidia's Grace CPUs for the first time, aimed at optimizing AI inference workloads, thereby enhancing its data processing capabilities and strengthening its competitive position in the market.
- Supply Chain Assurance: By collaborating closely with Nvidia, Meta secures a stable supply of Blackwell and Rubin GPUs, alleviating current chip shortages while also developing next-generation AI models to enhance its technological prowess.
See More
Marvell Technology Reports Record Earnings Amid Valuation Concerns
- Record Earnings: Marvell Technology reported record earnings as of February 9, 2026, showcasing its significant exposure in the AI data center sector, although valuation concerns persist in the market.
- Execution Risk Analysis: The analysis highlights that despite strong performance, execution risks could impact future growth, prompting investors to monitor the management's strategic execution capabilities and market reactions closely.
- Celestial AI Acquisition: The acquisition of Celestial AI is viewed as a crucial move to enhance Marvell's AI capabilities, expected to bolster the company's competitiveness in the rapidly evolving AI market.
- Future Growth Potential: Despite valuation concerns, analysts believe the company has the potential to unlock the next phase of growth through effective strategic execution and market adaptability, particularly in the AI and data center sectors.
See More
Amazon's 2026 AI Spending Plans Surprise Investors
- AI Spending Plans: Amazon plans to increase its artificial intelligence spending to $200 billion by 2026, a nearly $70 billion increase from 2025, indicating a strong commitment to AI investment that could further solidify its leadership in the cloud computing market.
- Custom Chip Business Growth: Amazon's custom chip business within AWS has surpassed a run rate of $10 billion and continues to grow at a triple-digit percentage rate year-over-year, highlighting the company's increasing competitiveness in AI accelerators and processors.
- Partnership with Marvell: Amazon has signed a five-year agreement with Marvell Technology to secure the supply of its Trainium chips; although Marvell's stock has struggled, its networking chip business remains a significant growth area in data centers.
- Optimistic Market Outlook: Despite competition with Microsoft, Marvell anticipates a substantial increase in custom AI accelerator revenue by fiscal 2028, and its recent acquisition in AI interconnect chips suggests strong potential in the rapidly evolving data center market.
See More
Amazon's $200 Billion Capital Expenditure Plan for 2026
- Significant Capital Expenditure Increase: Amazon plans to boost its capital expenditures to $200 billion in 2026, representing a nearly $70 billion increase from 2025, reflecting the company's strong commitment to cloud computing and AI investments aimed at solidifying its market leadership.
- Custom Chip Business Growth: Amazon's custom chip business is now running at over $10 billion annually and growing at a triple-digit percentage rate, particularly with surging demand for Trainium chips, which is expected to be fully supplied by mid-2026, enhancing the company's competitive edge in the AI sector.
- Partnership with Marvell: Amazon has solidified a five-year agreement with Marvell to design and supply its Trainium chips, and despite Marvell facing market challenges, its networking chip business remains a significant revenue source, indicating potential in the AI accelerator market.
- Optimistic Market Outlook: Despite competitive pressures, Marvell forecasts a substantial increase in custom AI accelerator revenue by fiscal 2028, aligned with the design progress of Microsoft's Maia 300 chip, suggesting that the company still presents a strong investment opportunity in the rapidly evolving custom silicon solutions market.
See More
US Stocks Decline Amid AI Outlook Concerns
- Market Decline: The S&P 500 Index fell by 0.44%, the Dow Jones by 0.57%, and the Nasdaq 100 by 0.66%, reflecting market concerns over the outlook for artificial intelligence, particularly impacting chipmakers and AI infrastructure stocks.
- Mixed Economic Data: Weekly initial jobless claims dropped to 206,000, a five-week low, indicating a strong labor market; however, the December trade deficit widened to $70.3 billion, exceeding expectations, suggesting economic pressures that could affect market confidence.
- Earnings Season Nearing End: Over 75% of S&P 500 companies have reported earnings, with 75% exceeding expectations, and Q4 earnings growth projected at 8.4%, providing some support for the market, although overall sentiment remains cautious.
- Geopolitical Risks Intensify: WTI crude oil prices rose over 1% to a three-week high due to U.S. military buildup in the Middle East, heightening inflation concerns and potentially increasing expectations for Fed rate hikes.
See More
OpenAI CEO Highlights Remarkable Progress of Chinese Tech in AI
- Remarkable Progress: OpenAI CEO Sam Altman highlighted in a CNBC interview that China's advancements in artificial intelligence are 'remarkable,' particularly in the race against the U.S. to develop artificial general intelligence (AGI), showcasing strong technological capabilities.
- Competitive Frontier: Altman noted that while Chinese tech companies are nearing the frontier in some areas, they lag in others, indicating a potentially uneven development that could impact the global tech competition landscape.
- Societal Technology Rollout: As China accelerates the rollout of AI technologies across various societal sectors, Altman's comments underscore China's significance in the global tech ecosystem, which may attract more investment and collaboration opportunities.
- International Cooperation Potential: Altman's remarks not only reflect recognition of China's tech progress but may also lay the groundwork for future U.S.-China cooperation in AI, fostering technology sharing and innovation.
See More
Meta Expands Partnership with Nvidia for AI Chip Deployment
- Expanded Collaboration: Meta has announced a new deal with Nvidia to deploy millions of AI chips across U.S. data centers, marking a significant upgrade in their technology partnership and is expected to further propel Meta's advancements in AI.
- Investment Commitment: Meta plans to invest $600 billion in the U.S. by 2028 for data centers and infrastructure, including the construction of its two largest AI data centers, Prometheus and Hyperion, demonstrating a long-term commitment to AI technology.
- New Technology Deployment: The partnership will see Meta independently deploy Nvidia's Grace CPUs for the first time, aimed at optimizing AI inference workloads, thereby enhancing its data processing capabilities and strengthening its competitive position in the market.
- Supply Chain Assurance: By collaborating closely with Nvidia, Meta secures a stable supply of Blackwell and Rubin GPUs, alleviating current chip shortages while also developing next-generation AI models to enhance its technological prowess.
See More
