Marvell’s role in helping tech titans create their own data center chips has boosted its revenue—and valuation
Under CEO Matt Murphy’s leadership since 2016, Marvell Technology has surged in market value, surpassing $100 billion for the first time and outpacing even Intel, despite Intel generating 10 times more annual revenue. Marvell’s key products—data processing units (DPUs), Ethernet networking solutions, SSD and HDD storage controllers, security accelerators, and custom chips—serve critical markets like data centers, cloud infrastructure, and automotive industries. Fueled by the explosive success of its data center business, now accounting for 72% of total revenue, and a five-year “multigenerational” agreement with Amazon on custom AI solutions, Marvell is poised to capture a third of the custom AI chip market projected to reach $50 billion by 2030. With Amazon’s Trainium AI accelerator chip driving increased AI workloads in the market, analysts anticipate Marvell’s annual revenue will grow 60% to over $8 billion by fiscal 2026, up from $5 billion in 2023.
My Take
Marvell’s focus on custom AI chips for industry giants signals a major shift in the semiconductor landscape, emphasizing tailored solutions over mass-market offerings. Companies that excel at co-designing innovative chips with cloud providers stand to dominate future AI markets.
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Link to article: https://www.wsj.com/tech/marvell-ai-chip-manufacturing-faa89cb6?st=x43wFV&reflink=article_imessage_share
Credit: Wall Street Journal