Marvell Technology (NASDAQ: MRVL) stock surged to consecutive record highs, closing at $131.28, as investor optimism around artificial intelligence infrastructure was fueled by a deepening partnership with Nvidia and confidence in Amazon's rapidly expanding in-house chip business.
The rally, which saw shares rise about 2.2%, builds on a powerful recovery from a more than 50% drop earlier in 2025. That decline was driven by fears Marvell might lose its role designing Amazon's next-generation Trainium AI chips. Those concerns have largely faded following Amazon's disclosure that its internal chip division—covering Trainium AI processors, Graviton CPUs, and Nitro networking hardware—now generates over $20 billion in annual revenue. CEO Andy Jassy's comments about potential third-party sales of Amazon-designed silicon reassured markets that hyperscaler vertical integration is not reducing external chip demand.
A major catalyst is Marvell's expanding collaboration with Nvidia. The companies plan to integrate Marvell's custom XPUs and high-speed networking systems into Nvidia's NVLink Fusion platform for semi-custom AI architectures. Nvidia CEO Jensen Huang described this as an "inference inflection," signaling a structural shift in AI system deployment where high-performance connectivity is becoming as critical as compute power.
Wall Street analysts have upgraded their outlooks, citing strong expectations for Marvell's optical networking business. Barclays upgraded Marvell to Overweight, projecting the company's optical-networking revenue could grow by up to 90% this year and next, driven by essential demand for optical interconnects in scaling AI data centers. B. Riley raised its price target to $156 from $135, maintaining a Buy rating, while KeyBanc expects Marvell's upcoming June earnings report to slightly beat expectations due to outsized data center demand.
