Marvell Technology (MRVL) stock surged almost 6% on Friday after Amazon (AMZN) disclosed explosive growth in its Trainium processor business, which Marvell manufactures exclusively. Amazon CEO Andy Jassy revealed that Trainium2 became a multibillion-dollar business, growing 150% quarter-over-quarter, with the chip now fully subscribed by customers.
The partnership positions Marvell at the center of Amazon’s artificial intelligence infrastructure buildout. Amazon’s Project Rainier supercomputer has gone live, featuring nearly 500,000 Trainium2 chips, with plans to deploy over one million chips by year-end. Trainium3, scheduled for customer preview in late 2025 with volume production in 2026, ensures Marvell maintains a secure manufacturing pipeline extending well into next year.
-
This AI Stock Is Cheaper Than AMD and Crushing It in Returns
-
A $1 Billion Reason to Buy AMD Stock Now
-
Earnings, Manufacturing Data and Other Can’t Miss Items this Week
-
Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won’t find anywhere else.
J.P. Morgan analyst Harlan Sur reaffirmed an “Overweight” rating on MRVL stock, accompanied by a $120 price target. Sur highlighted Marvell’s strategic positioning as cloud providers accelerate AI spending.
Amazon’s capital expenditure forecast for 2025 rose to $125 billion, above its initial guidance of $118.5 billion. This spending surge benefits Marvell’s custom ASIC business and its optical connectivity products acquired through the 2021 Inphi acquisition.
Sur projects Marvell’s custom ASIC segment will grow 18% to 20% in 2026, supported by continued Amazon collaboration on next-generation 2nm Trainium4 technology. The analyst’s thesis centers on Marvell’s transformation into a leader for optical connectivity and custom AI silicon that powers hyperscale cloud networks.
Despite Friday’s gains, Marvell stock is down 17% year-to-date (YTD), trailing the broader markets by a wide margin. Let’s see if you should buy, sell, or hold MRVL stock right now.
Marvell Technologies CEO Matt Murphy delivered compelling insights during recent investor conferences, underscoring the company’s dominant position in artificial intelligence infrastructure. The semiconductor manufacturer has transformed from a diversified chip maker into an AI powerhouse, with data center business now comprising 75% of total revenue, up from just 34% two years ago.
About the Author
