Marvell’s broad hyperscaler footprint and custom-chip ambitions are helping it shrug off fresh competitive pressure in AI infrastructure.
Marvell Technology, Inc.’s stock gained on Tuesday even as rival Qualcomm clinched a key AI chip deal with Amazon, the former’s longtime customer, with CEO Matt Murphy saying Marvell’s unique positioning and broad customer base put it in a favorable position.
“We are basically the Switzerland of this entire market right now; we work with everybody,” Murphy said in an interview to CNBC’s Jim Cramer. Over the past year, Marvell deepened its tie-ups with key customers, which now include all major hyperscalers as well as heavyweights such as Nvidia.
Marvell’s Expansive Customer Roster
Nvidia became an investor in Marvell in March. Last month, Marvell announced a custom and investment deal with Alphabet’s Google, the last cloud giant to partner with the company.
The Google deal could bring in $120 billion in revenue through fiscal 2033 and make the search giant one of its biggest investors, with up to a $12.2 billion stake. Still, Marvell’s last quarterly report failed to impress as the company said revenue from the deal would flow in more substantially in 2029.
MRVL stock rose 0.8% on Tuesday, capping a three-session rally of over 10%. Shares rose 0.5% in the overnight session. They are up 166% year to date.
Does Qualcomm-Amazon Deal Pressure Marvell?
On Tuesday, Qualcomm, best known for wireless chips and Snapdragon processors, announced that Amazon Web Services will use its custom silicon for AI inference and data-center networking. The pact also gives Amazon the right to acquire up to $4 billion in Qualcomm stock.
Murphy dismissed competitive pressure.“I think it’s a competitive market,” he told CNBC. “We’re very confident in our position and how we’ve evolved in this market across all the U.S. hyperscalers and the entire ecosystem.”
Marvell makes data-center and networking semiconductors and is best known for custom AI ASICs (Application-Specific Integrated Circuit), Ethernet switches, optical interconnects, and storage controllers that power AI servers and cloud infrastructure.
Retail, Analyst View On MRVL
On Stocktwits, retail sentiment for MRVL dipped over the weekend and was ‘bearish’ as of late Tuesday, with traders posting about the Qualcomm-Amazon deal and Murphy’s interview.
“$MRVL Amazon chose Qualcomm, it might be cooked,” said a trader.
Currently, 39 out of 44 analysts recommend ‘Buy’ or higher on the stock, and five recommend ‘Hold,’ per Koyfin. Their average price target of $285 implies a 26% upside to the stock’s closing price on Tuesday.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
Read Next: QCOM Stock Extends Gains Overnight: Analyst Says Amazon AI Deal ‘Changes Calculus For Qualcomm’
