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Marvell Rallies on Nvidia’s $2 Billion Partnership and Strong AI Outlook

The deal positions Marvell to supply faster optical links that AI data centers will rely on.

Overview

  • Nvidia unveiled a $2 billion equity stake and product tie-up with Marvell in late March, including work on silicon photonics and plans to plug Marvell networking into Nvidia’s AI systems.
  • Shares of Marvell rose 21.3% in March, according to S&P Global Market Intelligence, after investors digested the investment and a stronger growth path.
  • Marvell beat fiscal Q4 estimates with revenue up 22.1% to $2.2 billion and adjusted earnings of $0.80 per share, and it guided to a 9% sequential revenue rise and $0.79 in Q1 adjusted earnings.
  • Management said it expects data center revenue to grow 40% in fiscal 2027, which tops the average analyst view of about 25% and signals faster demand tied to AI buildouts.
  • The Nvidia pact highlights a shift toward optical links that use light to move data faster and farther than copper, while Marvell’s customer mix is broadening as Microsoft joins and worries about Amazon exposure ease.