Marvell's AWS Ties Still Strong Despite Qualcomm Challenge

Marvell Technology (MRVL) is facing new competition in Amazon's AI custom silicon and optical connectivity ecosystem, as Qualcomm (QCOM) has entered a key account where Marvell already has a strong presence.

Despite this development, Marvell's robust growth prospects remain intact. The company reported a 46% year-over-year surge in data-center revenue for Q2 FY2027, with management raising its full-year revenue forecast to ~$12B and FY2028 to ~$18B.

The company's strength in interconnect, switching, and Photonic Fabric, combined with its ongoing engagement with Amazon Web Services (AWS), supports a continued buy rating. Analysts will be closely monitoring Marvell's progress in custom silicon targets for FY2029 and the ramp-up of its 1.6T optical product line.