Nvidia invests $2 billion in Marvell to expand AI infrastructure and networking capabilities

Nvidia invests $2bn in chipmaker Marvell to boost AI networking

Nvidia is investing $2bn in Silicon Valley chipmaker Marvell to boost the networking technology that connects its AI chips into ever-larger data centres. The two semiconductor groups will work together on silicon photonics as part of an effort to upgrade data centre networking systems with optical technology to speed up data flows, they said on Tuesday. Nvidia's deal with Marvell could also make it easier for Big Tech companies' own custom AI chips to be put into Nvidia's data centre systems. Marvell helps US hyperscalers including Amazon to design their own specialised AI accelerator chips, providing an alternative to Nvidia's general-purpose graphics processing units. The two companies said their tie-up would enable "seamless integration" between these kinds of custom AI chips and Nvidia's GPUs, networking and storage systems. Nvidia is trying to leverage its leading position in AI processors to become a broader platform for AI data centres. That would help entrench itself in the facilities that power Big Tech's multibillion-dollar race to dominate AI. Earlier this month Nvidia launched a new dedicated chip for AI inference -- when an AI model responds to users' queries and generates output such as text and computer code -- marking the first time it had broadened its core AI chip products beyond GPUs. Shares in Marvell jumped about 8 per cent in late morning trade in New York on Tuesday and have gained more than 50 per cent over the past 12 months, leaving it worth close to $83bn. Chief executive Matt Murphy said the alliance would help customers with scalability and efficiency: "Our expanded partnership with Nvidia reflects the growing importance of high-speed connectivity, optical interconnect and accelerated infrastructure in scaling AI." Both Nvidia and Marvell have been making acquisitions to consolidate their positions in the AI data centre market. Last month, Marvell completed its $3.3bn acquisition of Celestial AI, which developed photonics technology that can join hundreds of thousands of AI accelerator chips together. Bringing AI chips together in vast clusters has become vital to building and deploying cutting-edge AI systems such as those that power Google's Gemini, Anthropic's Claude Code and OpenAI's ChatGPT. Nvidia has been gradually expanding its capabilities beyond GPUs since its $6.9bn acquisition of networking provider Mellanox in 2019. In December, it struck a roughly $20bn deal with AI chip start-up Groq, hiring its top talent and licensing its technology, which helped launch its new inference chip in March.

Nvidia invests $2 billion in Marvell, launches AI partnership

March 31 (Reuters) - Nvidia (NVDA.O), opens new tab has invested $2 billion in Marvell Technology (MRVL.O), opens new tab, and Marvell will join the Nvidia AI ⁠ecosystem, the companies said on Tuesday. Shares of Marvell rose nearly 12%, while Nvidia shares were up 1.5% in premarket ⁠trading. The tie-up makes it easier for Marvell to design ⁠custom artificial intelligence with its own networking ⁠gear and processors, the companies ⁠said. Reporting by Kritika Lamba in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab

Nvidia invests $2 billion in Marvell as stock jumps 9%

Nvidia $NVDA has announced a $2 billion investment in semiconductor company Marvell Technology, adding another chip industry partner to its expanding AI ecosystem. Marvell's stock rose more than 11% following the announcement, according to CNBC. Through the partnership, Marvell will be integrated into Nvidia's AI ecosystem, lowering the barrier for customers who want to develop products on top of that infrastructure. Collaboration will extend to two additional technical areas: silicon photonics and telecom networking infrastructure. "The inference inflection has arrived. Token generation demand is surging, and the world is racing to build AI factories," Nvidia CEO Jensen Huang said in a statement. "Together with Marvell, we are enabling customers to leverage NVIDIA's AI infrastructure ecosystem and scale to build specialized AI compute." This is not an isolated move. Nvidia has been deploying $2 billion checks across the technology sector with notable regularity, with prior recipients including Synopsys $SNPS, CoreWeave, Coherent, Lumentum, and, most recently, Nebius Group. The Marvell deal is the latest example of what some analysts and investors have flagged as an increasingly circular AI economy, in which a small group of chip companies, cloud providers, and AI labs finance one another's buildouts and pre-sell infrastructure capacity among themselves. Goldman Sachs $GS has cited "the increasing circularity of the AI ecosystem" as a concern, and Morgan Stanley $MS has warned that such arrangements can inflate demand and valuations without generating new economic value. Nvidia has pushed back on that characterization, telling analysts that its cross-investments are small relative to its overall revenue and that the companies it backs earn most of their money from outside customers. In its most recent earnings, Nvidia said demand for its Blackwell chips was effectively sold out. Marvell describes itself as a provider of data infrastructure semiconductors serving enterprise, cloud, and carrier customers.

US Stocks: Nvidia bets $2 billion on Marvell as rising AI adoption fuels competition; shares rise

Nvidia has invested $2 billion in Marvell Technology as part of efforts to make it easier for customers to use the custom artificial intelligence chips that the smaller company designs with Nvidia's networking gear and central processors. Nvidia has invested $2 billion in Marvell Technology as part of efforts to make it easier for customers to use the custom artificial intelligence chips that the smaller company designs with Nvidia's networking gear and central processors. Shares of Marvell rose about 7% on ⁠Tuesday, ⁠while Nvidia shares were up 2.7%. Through the deal, Nvidia aims to ensure it remains central to meeting the growing computing needs required by AI tools at a time when some companies are opting for custom processors instead of its pricey processors. "Nvidia gains access to Marvell's semi-custom silicon and advanced optical interconnect capabilities to help scale data center-level AI systems where bandwidth ⁠and power efficiency are key bottlenecks," said Jacob Bourne, analyst at EMarketer. "It also broadens Nvidia's ecosystem to include more specialized silicon, which ⁠helps Nvidia remain a key access point for increasingly diverse AI workloads." "Investors will likely see this deal as reducing friction as it allows AI chips from other suppliers to operate within Nvidia-dominated data centers. So Nvidia can maintain its dominant position while also expanding the scope and utility of the AI semiconductor sector," Bourne added. The companies will work on advanced networking solutions for AI, focusing on optical interconnects and silicon photonics technology, which enables high-speed, energy-efficient data transmission. Marvell will contribute custom chips and networking solutions compatible with Nvidia's NVLink Fusion, while ⁠the AI chip bellwether will supply supporting technologies including central processing units, network interface cards and interconnects. Big Tech firms including Alphabet and Meta are expected to spend at least $630 billion to build AI infrastructure this year, lifting demand for chips used in servers and networking equipment, and benefiting companies such as Marvell. Marvell has said it expects revenue to grow nearly 40% and approach $15 billion in fiscal 2028.

Marvell Stock Spikes On $2B Nvidia Deal To Build 'AI Factories' - Marvell Technology (NASDAQ:MRVL)

Marvell Stock Skyrockets On $2 Billion Nvidia Deal To Build 'AI Factories'Strategic AI Infrastructure Partnership The companies announced a strategic partnership to integrate Marvell into Nvidia's AI factory and AI-RAN ecosystem using NVLink Fusion, giving customers more flexibility to build next-generation AI infrastructure. Nvidia also invested $2 billion in Marvell to deepen the collaboration. Under the partnership, Marvell will supply custom XPUs and NVLink Fusion-compatible networking, while Nvidia will provide core technologies, including its CPU, networking, interconnect, and AI compute systems. Together, they will enable customers to build a scalable, heterogeneous AI infrastructure that integrates seamlessly with Nvidia's broader ecosystem. Expanding Into Networking and Telecom AI The companies will also collaborate on silicon photonics and advanced optical interconnects, while working to transform telecom networks into AI-driven infrastructure through Nvidia's Aerial AI-RAN platform for 5G and 6G. Technical Analysis Marvell is trading 6.9% above its 20-day simple moving average (SMA) and 11.7% above its 100-day SMA, maintaining an intermediate-term uptrend despite recent consolidation. Shares are up 42.62% over the past 12 months and are positioned closer to their 52-week highs than lows. RSI is at 49.61, which sits in neutral territory and suggests the stock isn't stretched after the latest run. Meanwhile, MACD is bullish with the MACD line at 2.9245 above the signal line at 2.8254, and a positive histogram of 0.0991 points to improving upside momentum. The combination of neutral RSI (around 50) and bullish MACD suggests mixed momentum. Key Resistance: $103.00 Key Support: $85.00 Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the May 28, 2026 (estimated) earnings report. EPS Estimate: N/A Revenue Estimate: N/A Valuation: P/E of 28.6x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy Rating with an average price target of $121.64. Recent analyst moves include: JP Morgan: Overweight (Raises Target to $135.00) (Mar. 6) Craig-Hallum: Buy (Raises Target to $164.00) (Mar. 6) B. Riley Securities: Buy (Raises Target to $135.00) (Mar. 6) Top ETF Exposure Significance: Because MRVL carries significant weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock. Price Action MRVL Stock Price Activity: Marvell Technology shares were up 9.55% at $96.20 during premarket trading on Tuesday, according to Benzinga Pro data. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Nvidia bets US$2 billion on Marvell as rising AI adoption fuels competition

Nvidia has invested US$2 billion in Marvell Technology as part of efforts to make it easier for customers to use the custom artificial intelligence chips that the smaller company designs with Nvidia's networking gear and central processors. Shares of Marvell rose more than nine per cent in premarket trading on Tuesday, while Nvidia shares were up 1.5 per cent. Through the deal, Nvidia aims to ensure it remains central to meeting the growing computing needs required by AI tools at a time when some companies are opting for custom processors instead of its pricey processors. "Together with Marvell, we are enabling customers to leverage Nvidia's AI infrastructure ecosystem and scale to build specialized AI compute," said Nvidia CEO Jensen Huang. The companies will work on advanced networking solutions for AI, focusing on optical interconnects and silicon photonics technology, which enables high-speed, energy-efficient data transmission. Marvell will contribute custom chips and networking solutions compatible with Nvidia's NVLink Fusion, while the AI chip bellwether will supply supporting technologies including central processing units, network interface cards and interconnects. Big Tech firms including Alphabet and Meta are expected to spend at least $630 billion to build AI infrastructure this year, lifting demand for chips used in servers and networking equipment from companies such as Marvell. Marvell has said it expects revenue to grow nearly 40 per cent and approach $15 billion in fiscal 2028.

Marvell stock surges 11% on Nvidia partnership, $2B investment By Investing.com

Investing.com -- Marvell Technology (NASDAQ:MRVL) shares jumped 11% on Tuesday following the announcement of a strategic partnership with NVIDIA and a $2 billion investment from the chipmaker. The partnership connects Marvell to NVIDIA's AI factory and AI-RAN ecosystem through NVIDIA NVLink Fusion, a rack-scale platform that enables customers to develop semi-custom AI infrastructure using the NVIDIA NVLink ecosystem. Under the agreement, Marvell will provide custom XPUs and NVLink Fusion-compatible scale-up networking, while NVIDIA will supply supporting technologies including Vera CPU, ConnectX NICs, Bluefield DPUs, NVLink interconnect and Spectrum-X switches, and rack-scale AI compute. The partnership also includes collaboration on silicon photonics technology and aims to transform telecommunications networks into AI infrastructure with NVIDIA Aerial AI-RAN for 5G/6G. "The inference inflection has arrived. Token generation demand is surging, and the world is racing to build AI factories," said Jensen Huang, founder and CEO of NVIDIA. "Together with Marvell, we are enabling customers to leverage NVIDIA's AI infrastructure ecosystem and scale to build specialized AI compute." Matt Murphy, chairman and CEO of Marvell, commented that the expanded partnership reflects the growing importance of high-speed connectivity, optical interconnect and accelerated infrastructure in scaling AI. The NVLink Fusion platform enables customers developing custom XPUs to build heterogeneous AI infrastructure fully compatible with NVIDIA systems, allowing integration with NVIDIA GPU, LPU, networking and storage platforms.

Nvidia announces $2bn investment in Marvell Technology

Marvell Technology shares surged over 9% in pre-market trading following the announcement of a $2bn investment from Nvidia. The agreement provides for Marvell's integration into Nvidia's AI ecosystem, facilitating the implementation of technological infrastructure for mutual clients. Both companies also announced collaborations in key areas such as silicon photonics and telecommunications networking. This transaction is part of a broader strategy by Nvidia, which has been ramping up investments in tech firms to strengthen its central position in AI. The group recently committed similar amounts to several companies, including Synopsys, CoreWeave, Coherent, Lumentum, and Nebius, thereby strengthening its influence across the entire value chain. Through this approach, Nvidia seeks to meet exponential growth in demand for computing power driven by AI inference and content generation. By leveraging strategic partnerships, the company intends to accelerate the rollout of specialized infrastructure and secure the essential technologies required for the sector's growth.