Marvell Technology Partners with Nvidia on the Future of AI Infrastructure. Does That Make MRVL Stock A Buy Here?
The race to build an AI infrastructure just got very interesting. Marvell Technology ( MRVL ) and Nvidia ( NVDA ) have announced a strategic partnership to place Marvell directly within Nvidia’s AI factory ecosystem. Nvidia is also backing the deal with a $2 billion investment in Marvell.
MRVL shares rose nearly 13% yesterday, valuing the manufacturer at a market value of $86.6 billion. For investors eyeing MRVL stock, the deal raises an obvious question: Is this the catalyst that takes the stock to the next level?
The partnership is built on Nvidia’s NVLink Fusion platform: a rack-scale system that allows companies to build customized intelligence infrastructure using Nvidia’s ecosystem. Under the agreement, Marvell will provide custom XPUs (accelerator chips) and a scaling network that connects to the NVLink Fusion architecture. Nvidia brings its Vera CPU, ConnectX network cards, BlueField data processing units, NVLink interconnect, and Spectrum-X switches.
Simply put, Marvell makes specialized silicon and connectivity, and Nvidia brings it all together in a full AI computing stack. The two companies will also collaborate on silicon photonics technology and work together to transform the world’s communication networks into AI infrastructure through Nvidia’s Aerial AI-RAN for fifth and sixth generation networks.
“The inflection point has arrived,” Nvidia CEO Jensen Huang said in a statement. “Together with Marvell, we’re enabling customers to leverage NVIDIA’s AI infrastructure and scale to build a special AI computer.”
Marvell Chairman and CEO Matt Murphy added that the agreement connects Marvell’s strengths in optical DSP, silicon photonics, and custom silicon directly to Nvidia’s growing AI ecosystem.
Marvell has been quietly building one of the most compelling AI infrastructure businesses in the semiconductor sector.
In its fourth fiscal quarter of 2026, the company posted record revenue of $2.22 billion, up 22% year-over-year (YoY). Its data center segment grew 21% to $1.65 billion, driven by growing demand for optical interconnects, custom chips, and replacement products.
For the full fiscal year, Marvell’s data center revenue exceeded $6 billion, growing 46% YoY. Its custom chip business doubled in that time.
Looking ahead:
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Marvell projects a 2027 fiscal profit of nearly $11 billion, up from the $10 billion it had targeted three months ago.
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It expects data center revenue to grow nearly 40% in fiscal 2027.
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By fiscal 2028, the company is targeting nearly $15 billion in total revenue, with data center growth accelerating to nearly 50% YoY.
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Non-GAAP earnings per share could exceed $5 in fiscal 2028 based on those projections, according to the company’s earnings call.
“We’re on track to meet those goals,” Murphy said during the call.
Nvidia’s investment and partnership adds a new layer to an already strong growth story.
Marvell had already achieved design wins with three Tier 1 US hyperscalers for its active power cable products and expects combined AEC and retimer revenue to more than double YoY by fiscal year 2027. Its optical interconnect business is growing at about 50% annually.
Now, with Nvidia’s support of 2 billion dollars and a formal role in NVLink Fusion, Marvell gets access to many of Nvidia’s customers: hyperscalers and manufacturers of models that create AI factories that Huang described.
The risks are real.
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Marvell’s custom chip business is focused on a small group of large customers.
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And since margins on full rack-scale system sales tend to decline, investors should watch gross margin trends closely.
However, the combination of record bookings, increased revenue guidance, and now the official Nvidia partnership gives Marvell a clear runway to the next phase of AI development. For investors comfortable with semiconductor-sector volatility, the case for MRVL stock looks increasingly difficult to dismiss.
Analysts tracking MRVL’s revenue forecast will rise from $8.2 billion in fiscal 2026 (ended March) to $25 billion in fiscal 2031.
If a tech stock is valued at 25x earnings, it could more than double in the next four years.
Out of 35 analysts covering MRVL stock, 25 recommend a “Strong Buy,” three recommend a “Neutral Buy,” six recommend a “Hold,” and one recommends a “Strong Sell.” The average price target for Marvell stock is $119.53, above the current price of $105.
As of the date of publication, Aditya Raghunath had no (directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is for informational purposes only. This article was originally published on Barchart.com
