Overview
- Marvell stock reached a new high as investors bet on suppliers linked to Nvidia’s push to build larger and faster AI data centers.
- The partnership calls for Marvell’s high-speed networking, custom chips, and optical links to slot into Nvidia’s NVLink Fusion racks, which connect GPUs to storage and memory across an entire cabinet.
- Nvidia disclosed a $2 billion stake in Marvell in late March, and analysts say the move shows Nvidia moving from a GPU seller to an architect of complete AI infrastructure.
- Amazon said its Trainium, Graviton, and Nitro chips now bring in more than $20 billion a year, which investors took as evidence that hyperscalers still need third-party networking and ASIC parts from firms like Marvell.
- Barclays raised its outlook on Marvell, pointing to rising demand for optical interconnects that reduce data delay and power use in AI clusters, a trend that could speed deployments and lower operating costs for cloud providers.