Marvell Shrugs Off Qualcomm-Amazon Threat, Stays on Bullish Trajectory
Marvell Technology Inc., the company behind custom AI ASICs and data-center semiconductors, has shrugged off competitive pressure from rival Qualcomm's deal with Amazon Web Services. MRVL stock rose 0.8% on Tuesday, capping a three-session rally of over 10%, as CEO Matt Murphy downplayed the threat.
'We are basically the Switzerland of this entire market right now,' Murphy said in an interview to CNBC's Jim Cramer, emphasizing Marvell's unique positioning and broad customer base that spans every major U.S. hyperscaler, including Nvidia.
The company has deepened its tie-ups with key customers over the past year, with all major hyperscalers and heavyweights such as Nvidia now working with Marvell. In March, Nvidia became an investor in Marvell, and last month, the company announced a custom and investment deal with Alphabet's Google.
The Google deal is expected to bring in $120 billion in revenue through fiscal 2033 and make the search giant one of its biggest investors, with up to a $12.2 billion stake.