Marvell Technology's AI Chip Innovations Drive Stock Surge Amid Booming AI Demand

Why Marvell Stock Soared 83% in 2024 | The Motley Fool

Shares of Marvell Technology (MRVL -3.26%), which makes data infrastructure semiconductors, soared 83.1% in 2024, according to data from S&P Global Market Intelligence. For context, that's more than triple the S&P 500 index's 25% return and nearly three times the tech-heavy Nasdaq Composite index's return of 29.6% last year. (In 2025, Marvell stock is down 3.5% through Friday, Jan. 10.) In 2024, Marvell stock's big outperformance was primarily driven by powerful demand for artificial intelligence (AI) capabilities. The company's data center end market sells custom AI chips -- which are application-specific integrated circuits (ASICs) -- and interconnect products for AI-enabled data centers. In the first half of the year, Marvell stock gained 15.9%. Relatively speaking, this was just an average performance since it was in line with the S&P 500's first-half return of 15.3%. Shares of AI chip king Nvidia skyrocketed 150% in this period. And shares of leading central processing unit (CPU) chip designer Arm Holdings surged 118% in the first half of the year, though ended the year with a 64.2% annual gain. The key reason Marvell stock didn't perform as well as shares of select other chipmakers in the first half of 2024 is that the company has a good-sized non-AI-related business. And the end market for these chips has been struggling. Through September, Marvell stock's year-to-date performance remained approximately in line with that of the broader market. It rose 19.6% over this period, compared with the S&P 500's 22.1% return. Marvell stock performed fantastically in the fourth quarter of 2024. In this quarter, shares rocketed 52%, crushing the S&P 500's 2.4% return. The main catalyst for this incredible outperformance was the company's release of its report for the third quarter of its fiscal year 2025 (ended Nov. 2, 2024). Marvell stock soared 23.2% on the day after the Dec. 3 release. Highlights from that quarterly report: Perhaps the best news in the earnings release was the comment from CEO Matt Murphy that the company expects its "substantial momentum to continue in fiscal 2026."

What's Going On With Marvell Technology (MRVL) Stock? - Marvell Tech (NASDAQ:MRVL)

JPMorgan analyst Harlan Sur highlights Marvell's strong AI-driven growth momentum. Marvell Technology Inc MRVL shares are trading higher by some 7% to $118.23 over the trailing week. JPMorgan analyst Harlan Sur this week provided an optimistic outlook for the company, highlighting the company's strong momentum in AI-driven growth. Marvell also unveiled its custom XPU architecture, integrating co-packaged optics to enhance AI server scalability with superior data transmission reach and energy efficiency. What To Know: Sur highlighted that Marvell is set to surpass its $2.5 billion AI revenue target for CY25, fueled by robust demand for optical and copper networking products and AI ASIC programs with Amazon and Google. Read Also: LA Wildfire Damages Could Top $52 Billion As California Faces Property Insurance Crisis The company is also expanding into scale-up networking with advanced solutions like active electrical cables, co-packaged optics and linear pluggable optics. Sur noted Marvell's partnership with Amazon remained solid, with expectations of sustained multi-generational product wins. Despite competition from Amazon's 3nm AI compute ASIC program, Marvell anticipated no revenue disruptions through CY26, projecting continued growth. Sur also described the company's $8 billion AI Custom ASIC revenue target for CY28 as conservative given the market's rapid expansion. Read Also: MRVL Stock Has Gained Over 7% In Last Five Sessions As Marvell Technology's New Chip Boosts AI Server Performance: Here's What Technical Analysis Says Is MRVL A Good Stock To Buy? An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages -- such as Marvell's page for example -- there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter. These are known as capital allocation programs. Marvell Tech does pay a dividend, which yields 0.31% per year as of the closing price on Jan. 9, 2025. Feel free to search Benzinga's dividend calendar for the next company due to pay a dividend and determine what kind of yield you can earn for holding a share of the company. For example, if you're looking to earn an annualized return of 18.34%, you'll need to buy a share of Orchid Island Cap by Jan. 31, 2025. Once done, you can expect to receive a nominal payout of $0.12 on Feb. 12, 2025. Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Marvell will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand. According to data from Benzinga Pro, MRVL has a 52-week high of $126.12 and a 52-week low of $53.19. Image courtesy of Pixabay MRVLMarvell Technology Inc$117.571.15%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

What's Going On With Marvell Technology (MRVL) Stock? - Marvell Tech (NASDAQ:MRVL)

The company earlier unveiled its custom XPU architecture featuring co-packaged optics technology. Marvell Technology Inc MRVL shares are trading higher by 3.6% to $122.40 during Monday's session. The company earlier unveiled its custom XPU architecture featuring co-packaged optics technology. What To Know: Marvell says this innovation enables hyperscalers to scale AI server performance by integrating optical components into XPUs, offering 100x longer data transmission reach compared to copper interconnects. The company says the architecture facilitates seamless scaling of AI servers, connecting hundreds of XPUs across racks with optimal latency and energy efficiency. Read Also: Uber CFO Says Stock Undervalued, Initiates $1.5 Billion Accelerated Stock Buyback Marvell's 3D SiPho Engine, a core component of the design, delivers 200Gbps interfaces, doubling bandwidth and reducing power usage by 30%. With eight years of silicon photonics expertise and high-volume deployments, Marvell says the company is poised to drive AI infrastructure scalability. What Else: Marvell Technology's stock also surged alongside peers Monday, fueled by investor optimism ahead of CES 2025, where Nvidia's keynote is expected to highlight AI advancements. Microsoft's $80 billion AI data center investment and Foxconn's robust cloud, networking, and AI server revenues reinforced confidence in semiconductor demand. AI and advanced chips are pivotal for tech growth, driving the semiconductor sector's remarkable 2024 rally and supporting expectations for continued gains in 2025 under favorable market conditions. Read Also: Hydrogen's Green Light Moment: Will PLUG Power Up? How To Buy MRVL Stock By now you're likely curious about how to participate in the market for Marvell Tech - be it to purchase shares, or even attempt to bet against the company. Buying shares is typically done through a brokerage account. You can find a list of possible trading platforms here. Many will allow you to buy 'fractional shares,' which allows you to own portions of stock without buying an entire share. For example, some stock, like Berkshire Hathaway, or Amazon.com, can cost thousands of dollars to own just one share. However, if you only want to invest a fraction of that, brokerages will allow you to do so. In the the case of Marvell Tech, which is trading at $122.4 as of publishing time, $100 would buy you 0.82 shares of stock. If you're looking to bet against a company, the process is more complex. You'll need access to an options trading platform, or a broker who will allow you to 'go short' a share of stock by lending you the shares to sell. The process of shorting a stock can be found at this resource. Otherwise, if your broker allows you to trade options, you can either buy a put option, or sell a call option at a strike price above where shares are currently trading - either way it allows you to profit off of the share price decline. According to data from Benzinga Pro, MRVL has a 52-week high of $126.12 and a 52-week low of $53.19. MRVLMarvell Technology Inc$121.502.81%WatchlistOverviewMarket News and Data brought to you by Benzinga APIs

MRVL Stock Has Gained Over 7% In Last Five Sessions As Marvell Technology's New Chip Boosts AI Server Performance: Here's What Technical Analysis Says - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Marvell Tech (NASDAQ:MRVL)

Shares of Marvell Technology Inc MRVL have risen by 7.04% over the last five trading sessions as the semiconductor manufacturer said that its XPU chip with a new update accelerates the performance of AI servers. Technical analysis of daily moving averages indicate a strong bullish uptrend. What Happened: Chipmaker Marvell in a press release dated Jan. 6 said that its chip called the 'Marvell AI accelerator' or XPU, when integrated Co-Packaged Optics (CPO) enhances AI server performance. According to the press release, by leveraging integrated optics with XPUs, AI servers can achieve significantly improved connectivity. This translates to 100 times greater reach and faster data transfer rates between XPUs, enabling seamless communication across multiple racks. It also minimizes latency and power consumption, paving the way for highly scalable and efficient AI systems. Apart from this, Marvell's CEO Matt Murphy during its third-quarter earnings call said that they expect a 26% growth in the topline in fiscal 2025 on an annual basis. "The exceptional performance in the third quarter, and our strong forecast for the fourth quarter, are primarily driven by our custom AI silicon programs, which are now in volume production, further augmented by robust ongoing demand from cloud customers for our market-leading interconnect products.," Murphy added. Why It Matters: Shares of Marvell have risen by 89.87% in 2024, whereas, the Invesco QQQ Trust ETF QQQ, mirrors the Nasdaq 100, rose 26.99% in the same period, according to Benzinga Pro. Over the last six months, the shares gained 60.12%, outperforming QQQ which just rose 3.52% in the same period. See Also: Franklin Covey Shares Fall Nearly 8% After Q1 Miss, Management Reaffirms Optimistic Guidance Despite Wednesday's 0.56% fall to $117.57 apiece during after-hours technical analysis of daily moving averages shows strong support for the stock. Marvell's shares were above its eight, 20, 50, and 200-day simple moving averages, suggesting a bullish uptrend. The 20-day moving average price was $113.87 apiece, whereas the 50-day average stood at $101.27. The 200-day moving average was at $78.20. On the other hand, the relative strength index of 59.80 suggested that the stock could be moderately overbought but still in the neutral zone. See Also: Charlie Munger's Top Pick Costco Reports Strong December Sales: Analysts Expect A 7% Jump In January According to Benzinga, MRVL has a consensus price target of $111.06 per share based on the ratings of 33 analysts. The highest price target out of all the analysts tracked by Benzinga is $149 apiece issued by Craig-Hallum as of Jan. 6, 2025. The lowest target price is $75 per share issued by Barclays in Jan. 16, 2024. The average price target between Craig-Hallum, Stifel, and Morgan Stanley imply 13.12% upside for MRVL. Read Next: Nancy Pelosi's Stock Pick Palo Alto Networks Gets A Downgrade From Top Investment Bank As Sector-Wide Consolidation Down-Cycle Weighs on Sentiment Courtesy of Marvell Technology, Inc. MRVLMarvell Technology Inc$117.571.15%WatchlistOverviewQQQInvesco QQQ Trust, Series 1$513.93-0.24%Market News and Data brought to you by Benzinga APIs

Marvell Stock Gains as Custom AI Chips Boost Performance

The announcement comes after Marvell posted a current-quarter forecast that significantly exceeded Wall Street expectations. Marvell Technology (MRVL) shares climbed Monday after the company said its artificial intelligence (AI) accelerator chips (XPUs) are now better able to increase the performance of AI servers. The company said its co-packaged optics technology boosts server performance by increasing XPU density from tens of chips within one server rack to hundreds across multiple racks. The integrated technology is now available for Marvell's clients, namely cloud hyperscalers, to develop custom XPU designs. The news comes after Marvell posted a current-quarter revenue forecast last month that significantly exceeded Wall Street expectations. On the company's fiscal third-quarter earnings call, Chief Executive Officer (CEO) Matt Murphy said that Marvell was on track to exceed its previous expectation that AI network and custom processor chip sales would reach $2.5 billion by fiscal 2026. Shares of Marvell rose nearly 2% intraday Monday to $120.22, and have doubled over the past year.

JPMorgan Sees Marvell's AI Revenue Surge With $2 Billion Run-Rate In Networking by 2025 - Marvell Tech (NASDAQ:MRVL)

Marvell's AI and optical networking products seeing strong demand, with $2B revenue run-rate expected by CY25. JPMorgan analyst Harlan Sur shared key takeaways of a virtual meeting on Monday with Marvell Technology, Inc. MRVL. The analyst said the company is on track to significantly exceed its previous AI target of $2.5 billion in CY25, driven by strong performance in AI optical/copper networking products and two AI ASIC programs for AWS and Google. The company is expanding into scale-up networking applications (within-rack connectivity) with solutions like active electrical cables (AEC), co-packaged optics (CPO), and linear pluggable optics (LPO), said the analyst. Sur noted the Amazon partnership remained strong, with a clear path to multi-generational product wins. Despite competitive noise around Amazon's 3nm AI compute ASIC program, the company expected no revenue disruption in CY26 and forecasts continued AI ASIC growth in both CY25 and CY26, added the analyst. The analyst wrote that given the AI accelerator market's significant growth since April 2024 and the increasing adoption of custom silicon, the company now viewed the $8 billion AI Custom ASICs revenue target for CY28 as conservative. Sur further said Marvell's optical networking products, including the 800G PAM4 DSP and 1.6T PAM4 DSP, are seeing strong demand, with significant growth expected in DCI products. The carrier and enterprise networking segments are on track for a $2 billion revenue run-rate, with continued growth through CY25 as shipping aligns with consumption trends, added the analyst. Yesterday, the company unveiled its custom XPU architecture featuring co-packaged optics technology. Investors can gain exposure to the stock via Spear Alpha ETF SPRX and Segall Bryant & Hamill Trust Segall Bryant & Hamill Select Equity ETF USSE. MRVL Price Action: Marvell Technology shares are down 1.89% at $116.76 at publication Tuesday. Read Next: AI Chip Stocks Nvidia, Broadcom, AMD, Taiwan Semi, Micron, Super Micro Surge Premarket: Whats Going On? Photo: Shutterstock MRVLMarvell Technology Inc$116.99-1.70%WatchlistOverviewSPRXSpear Alpha ETF$29.04-2.70%USSESegall Bryant & Hamill Trust Segall Bryant & Hamill Select Equity ETF$33.17-0.64%Market News and Data brought to you by Benzinga APIs

Marvell launches new AI accelerator with co-packaged optics By Investing.com

SANTA CLARA, Calif. - Marvell (NASDAQ:MRVL) Technology, Inc. (NASDAQ: MRVL), a semiconductor company whose stock has surged nearly 98% over the past year according to InvestingPro data, has announced an advancement in its custom AI accelerator architecture, integrating co-packaged optics (CPO) technology to significantly enhance server performance. This new architecture allows for the expansion of AI server capabilities, scaling up from tens of XPUs within a single rack to hundreds across multiple racks. With a market capitalization of over $102 billion, Marvell has positioned itself as a significant player in the AI infrastructure space. The company's custom AI accelerator combines XPU compute silicon, high-bandwidth memory (HBM), and other chiplets with Marvell 3D SiPho Engines on the same substrate. This approach eliminates the reliance on electrical signals traveling through copper cables or across a printed circuit board, enabling faster data transfer rates and distances up to 100 times longer than electrical cabling. The result is improved latency and power efficiency for AI servers. InvestingPro data shows strong analyst confidence in Marvell's direction, with 28 analysts recently revising their earnings expectations upward for the upcoming period. Marvell's CPO technology integrates optical components directly within a single package, reducing signal loss and enhancing signal integrity. The technology leverages Marvell's silicon photonics optical engines, which provide higher data transfer rates and are less susceptible to electromagnetic interference than traditional copper connections. The integration also leads to improved power efficiency by reducing the need for high-power electrical drivers. The Marvell 3D SiPho Engine, a key component for incorporating CPO into XPUs, was first demonstrated at OFC 2024. It supports 200Gbps electrical and optical interfaces and combines numerous components to deliver double the bandwidth and input/output bandwidth density, with a 30% reduction in power per bit compared to devices with 100G interfaces. Marvell has a history of delivering silicon photonics technology, with over 10 billion device hours of field operation logged. The company's interconnect portfolio includes high-performance SerDes and die-to-die technology IP, PCIe retimers, CXL devices, and various digital signal processors for data center connectivity. According to LightCounting, a market research firm, CPO technology is expected to see significant growth, with port shipments projected to increase from under 50 thousand today to over 18 million by 2029, primarily for server connections. This advancement in Marvell's custom AI accelerator architecture with CPO technology is set to provide cloud hyperscalers with the ability to develop custom XPUs that meet the growing demands of AI applications. The information provided is based on a press release statement from Marvell Technology, Inc. In other recent news, Marvell Technology has been in the spotlight due to its impressive growth and strategic advancements. KeyBanc Capital Markets maintained its Overweight rating on Marvell, setting a price target of $125 based on FY26 earnings per share estimates. This comes after the company reported a 75% year-to-date return, with 28 analysts revising their earnings expectations upward. Marvell also recently launched a 1.6 Tbps optical chipset and a custom High-Bandwidth Memory (HBM) compute architecture, both aimed at enhancing data transfers and AI performance. Raymond (NS:RYMD) James and CFRA analyst Angelo Zino increased their price targets for Marvell to $130, citing strong growth prospects. Raymond James anticipates a potential revenue compound annual growth rate (CAGR) of over 25% for Marvell over the next three to four years if AI spending remains strong. Earnings per share (EPS) estimates for fiscal years 2025, 2026, and 2027 have been revised upwards by 28 analysts, reflecting optimism for the company's financial performance in the coming years. CFRA analyst Angelo Zino has also adjusted the EPS forecasts for the coming fiscal years, raising the fiscal year 2025 EPS estimate to $1.63 from $1.56, fiscal year 2026 to $2.76 from $2.73, and fiscal year 2027 to $3.72 from $3.48. These adjustments reflect the anticipated scaling of the market for custom silicon chips, particularly as production by hyperscalers is expected to ramp up significantly from 2025 to 2027.