Marvell Technology Partners with Google for AI Chip Development
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy MRVL?
Source: Fool
- Market Share Dominance: Nvidia holds an impressive 85% to 92% share of the AI accelerator market, prompting cloud giants to aggressively develop custom AI silicon to reduce reliance on a single supplier, thereby reshaping the entire industry supply chain.
- Significant Revenue Growth: Marvell Technology's custom ASIC business skyrocketed from nearly zero to $1.5 billion in annual revenue within a single fiscal year, highlighting its critical role in AI infrastructure, particularly with 18 design wins from hyperscalers like Microsoft and Amazon, which solidifies its market position.
- Deepening Strategic Partnerships: Google's collaboration with Marvell to co-develop a memory processing unit and next-gen TPU not only enhances Marvell's market visibility but also signifies its rising status as a strategic co-design partner, potentially altering the future landscape of AI chip development.
- Optimistic Outlook: Marvell anticipates reaching $15 billion in total sales by fiscal 2028, with projected annual growth exceeding 30%, and its recent acquisition of Celestial AI to bolster photonic interconnect technology further enhances its competitiveness in the AI sector.
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Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to fall
30 Analyst Rating
22 Buy
8 Hold
0 Sell
Moderate Buy
Current: 158.210
Low
85.00
Averages
120.12
High
156.00
Current: 158.210
Low
85.00
Averages
120.12
High
156.00
About MRVL
Marvell Technology, Inc. together with its consolidated subsidiaries, is a supplier of data infrastructure semiconductor solutions, spanning the data center core to network edge. It is engaged in the design, development and sale of integrated circuits. Its product offerings include custom application-specific integrated circuits (ASICs), interconnects, ethernet solutions, fiber channel adapters, processors and storage controllers. In addition, it is also developing Ultra Accelerator LinkTM (UALinkTM) switches and ethernet for scale-up networking (ESUN) switches for the emerging scale-out artificial intelligence market. Its solutions integrate multiple analogs, mixed-signal and digital intellectual property components incorporating hardware, firmware and software technologies and its system knowledge to provide its customers with integrated solutions for their end products. It designs and manufactures photonic integrated circuits for ultra-high-bandwidth and low-power 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 Partners with Google for AI Chip Development
- Market Share Dominance: Nvidia holds an impressive 85% to 92% share of the AI accelerator market, prompting cloud giants to aggressively develop custom AI silicon to reduce reliance on a single supplier, thereby reshaping the entire industry supply chain.
- Significant Revenue Growth: Marvell Technology's custom ASIC business skyrocketed from nearly zero to $1.5 billion in annual revenue within a single fiscal year, highlighting its critical role in AI infrastructure, particularly with 18 design wins from hyperscalers like Microsoft and Amazon, which solidifies its market position.
- Deepening Strategic Partnerships: Google's collaboration with Marvell to co-develop a memory processing unit and next-gen TPU not only enhances Marvell's market visibility but also signifies its rising status as a strategic co-design partner, potentially altering the future landscape of AI chip development.
- Optimistic Outlook: Marvell anticipates reaching $15 billion in total sales by fiscal 2028, with projected annual growth exceeding 30%, and its recent acquisition of Celestial AI to bolster photonic interconnect technology further enhances its competitiveness in the AI sector.
See More
Marvell Technology Emerges as Key AI Chip Design Partner
- Market Position Enhancement: Marvell Technology's custom ASIC business skyrocketed from nearly zero to $1.5 billion in annual revenue within a single fiscal year, highlighting its critical role in AI infrastructure and positioning it for further growth in the rapidly expanding AI market.
- Strategic Partnership: Google is collaborating with Marvell to co-develop two custom AI chips, indicating that Marvell is not just a vendor but a strategic co-design partner, which will enhance its competitiveness in the AI chip market.
- Financial Growth Outlook: Marvell's revenue grew by 42% to $8.2 billion in fiscal 2026, with management projecting total sales to reach $15 billion by fiscal 2028, showcasing strong growth potential that is likely to attract investor interest.
- Technology Acquisition: Marvell's acquisition of Celestial AI for $3.25 billion aims to integrate photonic interconnect technology, which will enhance data transfer speeds and break the
See More
U.S. Stocks Close Lower, Weighed Down by Tech Sector
- Tech Sector Decline: Technology stocks fell broadly as concerns about the return on massive AI investments grew, with OpenAI missing its new user and sales targets, putting pressure on shares of partners like Nvidia and Oracle, which negatively impacted market sentiment.
- Positive Economic Data: Despite the market downturn, the U.S. consumer confidence index unexpectedly rose to 92.8, surpassing expectations, indicating economic resilience that could provide support for the market.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the U.S. and Iran in the Strait of Hormuz, potentially exacerbating the global energy crisis and pushing inflation expectations higher.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, focusing on oil prices and inflation dynamics, reflecting a cautious outlook on the economic landscape.
See More
US Stock Market Volatility Amid Economic Data
- Tech Stock Pressure: Technology stocks are under pressure due to concerns over the return on massive investments in artificial intelligence, as OpenAI recently failed to meet its new user and sales targets, leading to declines in shares of partners like Nvidia and Oracle, reflecting market caution regarding the future of the AI sector.
- Positive Economic Data: The US consumer confidence index unexpectedly rose to 92.8, surpassing expectations of 89.0, indicating an increase in consumer confidence that could positively impact the stock market, although overall market pressures remain.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the US and Iran over the Strait of Hormuz, potentially deepening the global energy crisis and impacting inflation expectations and stock performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will maintain interest rates at the upcoming meeting, despite increased uncertainty regarding future policy adjustments due to inflation and oil price volatility, reflecting investor caution about the economic outlook.
See More
US Stocks Mostly Lower, Tech Sector Under Pressure
- Tech Sector Decline: OpenAI's failure to meet new user and sales targets has led to significant declines in its partners and AI infrastructure stocks like Nvidia and Oracle, reflecting market concerns about the return on massive AI investments and potentially impacting future growth prospects for these companies.
- Coca-Cola's Strong Performance: Coca-Cola reported Q1 net revenue of $12.5 billion, exceeding market expectations of $12.25 billion, resulting in a stock price increase of over 5%, demonstrating strong demand and brand power in the consumer goods market.
- Surging Oil Prices: WTI crude oil prices rose by more than 3% to a two-week high due to escalating tensions between the US and Iran over the Strait of Hormuz, which could deepen the global energy crisis and influence inflation expectations and stock market performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, reflecting a cautious stance on oil prices and inflation developments, which may affect investor confidence and market liquidity.
See More
Meta Shifts to Commercial AI Strategy Amid Earnings Call
- Commercial Shift: During the latest earnings call, CEO Mark Zuckerberg announced Meta's pivot from open-source to a commercial AI strategy with the launch of its first closed-source model, Muse Spark, aimed at competing with paid services from Google and OpenAI, with Q1 revenue expected to rise 31% to $55.6 billion, highlighting the company's commitment to the AI market.
- Talent Investment: Zuckerberg's $14.3 billion investment in Scale AI and the hiring of former GitHub CEO Nat Friedman signal an aggressive rebuild of Meta's internal AI team to bridge the gap with market leaders and enhance technological capabilities.
- Advertising Revenue Potential: While vision models currently lag behind text in hype, analysts believe Meta's superior image generation tools will unlock advertising budgets by automating high-performing creative, driving short-term revenue growth and further solidifying its market position.
- Capital Expenditure Pressure: With projected capital expenditures hitting $135 billion, investors are concerned about the company's massive infrastructure spending and recent 10% workforce reduction, demanding a clear roadmap for profitability to support its long-term growth strategy.
See More
Marvell Technology Partners with Google for AI Chip Development
- Market Share Dominance: Nvidia holds an impressive 85% to 92% share of the AI accelerator market, prompting cloud giants to aggressively develop custom AI silicon to reduce reliance on a single supplier, thereby reshaping the entire industry supply chain.
- Significant Revenue Growth: Marvell Technology's custom ASIC business skyrocketed from nearly zero to $1.5 billion in annual revenue within a single fiscal year, highlighting its critical role in AI infrastructure, particularly with 18 design wins from hyperscalers like Microsoft and Amazon, which solidifies its market position.
- Deepening Strategic Partnerships: Google's collaboration with Marvell to co-develop a memory processing unit and next-gen TPU not only enhances Marvell's market visibility but also signifies its rising status as a strategic co-design partner, potentially altering the future landscape of AI chip development.
- Optimistic Outlook: Marvell anticipates reaching $15 billion in total sales by fiscal 2028, with projected annual growth exceeding 30%, and its recent acquisition of Celestial AI to bolster photonic interconnect technology further enhances its competitiveness in the AI sector.
See More
Marvell Technology Emerges as Key AI Chip Design Partner
- Market Position Enhancement: Marvell Technology's custom ASIC business skyrocketed from nearly zero to $1.5 billion in annual revenue within a single fiscal year, highlighting its critical role in AI infrastructure and positioning it for further growth in the rapidly expanding AI market.
- Strategic Partnership: Google is collaborating with Marvell to co-develop two custom AI chips, indicating that Marvell is not just a vendor but a strategic co-design partner, which will enhance its competitiveness in the AI chip market.
- Financial Growth Outlook: Marvell's revenue grew by 42% to $8.2 billion in fiscal 2026, with management projecting total sales to reach $15 billion by fiscal 2028, showcasing strong growth potential that is likely to attract investor interest.
- Technology Acquisition: Marvell's acquisition of Celestial AI for $3.25 billion aims to integrate photonic interconnect technology, which will enhance data transfer speeds and break the
See More
U.S. Stocks Close Lower, Weighed Down by Tech Sector
- Tech Sector Decline: Technology stocks fell broadly as concerns about the return on massive AI investments grew, with OpenAI missing its new user and sales targets, putting pressure on shares of partners like Nvidia and Oracle, which negatively impacted market sentiment.
- Positive Economic Data: Despite the market downturn, the U.S. consumer confidence index unexpectedly rose to 92.8, surpassing expectations, indicating economic resilience that could provide support for the market.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the U.S. and Iran in the Strait of Hormuz, potentially exacerbating the global energy crisis and pushing inflation expectations higher.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, focusing on oil prices and inflation dynamics, reflecting a cautious outlook on the economic landscape.
See More
US Stock Market Volatility Amid Economic Data
- Tech Stock Pressure: Technology stocks are under pressure due to concerns over the return on massive investments in artificial intelligence, as OpenAI recently failed to meet its new user and sales targets, leading to declines in shares of partners like Nvidia and Oracle, reflecting market caution regarding the future of the AI sector.
- Positive Economic Data: The US consumer confidence index unexpectedly rose to 92.8, surpassing expectations of 89.0, indicating an increase in consumer confidence that could positively impact the stock market, although overall market pressures remain.
- Surging Oil Prices: WTI crude oil prices jumped over 3% to a two-week high amid escalating tensions between the US and Iran over the Strait of Hormuz, potentially deepening the global energy crisis and impacting inflation expectations and stock performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will maintain interest rates at the upcoming meeting, despite increased uncertainty regarding future policy adjustments due to inflation and oil price volatility, reflecting investor caution about the economic outlook.
See More
US Stocks Mostly Lower, Tech Sector Under Pressure
- Tech Sector Decline: OpenAI's failure to meet new user and sales targets has led to significant declines in its partners and AI infrastructure stocks like Nvidia and Oracle, reflecting market concerns about the return on massive AI investments and potentially impacting future growth prospects for these companies.
- Coca-Cola's Strong Performance: Coca-Cola reported Q1 net revenue of $12.5 billion, exceeding market expectations of $12.25 billion, resulting in a stock price increase of over 5%, demonstrating strong demand and brand power in the consumer goods market.
- Surging Oil Prices: WTI crude oil prices rose by more than 3% to a two-week high due to escalating tensions between the US and Iran over the Strait of Hormuz, which could deepen the global energy crisis and influence inflation expectations and stock market performance.
- Fed Policy Expectations: The market anticipates that the Federal Reserve will keep interest rates unchanged at the upcoming meeting, reflecting a cautious stance on oil prices and inflation developments, which may affect investor confidence and market liquidity.
See More
Meta Shifts to Commercial AI Strategy Amid Earnings Call
- Commercial Shift: During the latest earnings call, CEO Mark Zuckerberg announced Meta's pivot from open-source to a commercial AI strategy with the launch of its first closed-source model, Muse Spark, aimed at competing with paid services from Google and OpenAI, with Q1 revenue expected to rise 31% to $55.6 billion, highlighting the company's commitment to the AI market.
- Talent Investment: Zuckerberg's $14.3 billion investment in Scale AI and the hiring of former GitHub CEO Nat Friedman signal an aggressive rebuild of Meta's internal AI team to bridge the gap with market leaders and enhance technological capabilities.
- Advertising Revenue Potential: While vision models currently lag behind text in hype, analysts believe Meta's superior image generation tools will unlock advertising budgets by automating high-performing creative, driving short-term revenue growth and further solidifying its market position.
- Capital Expenditure Pressure: With projected capital expenditures hitting $135 billion, investors are concerned about the company's massive infrastructure spending and recent 10% workforce reduction, demanding a clear roadmap for profitability to support its long-term growth strategy.
See More
