Small AI chip maker Marvell Technology has recently shared its latest earnings report with remarkable numbers, putting it ahead of chip maker giant Intel in market capitalization.
Marvell’s stock price skyrocketed this week after a strong earnings report and news of a deeper partnership with Amazon. The stock, which had already climbed 60% this year, surged another 18% following Tuesday’s announcement. This surge briefly pushed Marvell’s market value above $100 billion for the first time.
The impressive gains have placed Marvell’s market capitalization ahead of struggling tech giant Intel, despite Intel generating ten times more annual revenue.
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Marvell’s data center business is booming and rapidly closing the revenue gap with its more traditional segments. In the recent quarter, data center sales nearly doubled to $1.1 billion.
This explosive growth is expected to continue, with the data center unit accounting for roughly 72% of total revenue by the end of January. This is a significant increase from 40% in the previous year. As a result, the company’s overall revenue is becoming less reliant on older segments like telecommunications, cable TV, and automotive.
Marvell’s future looks promising, thanks to a new five-year deal with Amazon. This agreement will have Marvell working with Amazon to design custom AI chips. As Amazon expands its cloud computing business and reduces reliance on Nvidia, Marvell’s AI chip business is set to grow significantly.
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Analysts predict that Marvell’s AI custom revenue will more than double in the next fiscal year, driven by the upcoming Trainium chip. This growth is expected to boost Marvell’s annual revenue to over $8 billion in fiscal 2026, a 40% increase from this year’s projected revenue.
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