Neha Gupta
2 min read
In This Article:
Marvell Technology, Inc. (NASDAQ:MRVL) has moved to strengthen its prospects in the high-growth artificial intelligence infrastructure market. On May 19, the company confirmed a strategic partnership with NVIDIA Corporation (NASDAQ:NVDA) that paves the way for integration of NVIDIA's NVLink Fusion technology into its custom cloud platform silicon solutions.
A handshake between two men in the lobby of a modern office building, signifying the formation of a Master Limited Partnership.
Integrating NVLink Fusion technology will allow Marvell to offer hyperscaler capabilities to accelerate the deployment of custom AI infrastructure. That’s because NVLink Fusion technology comes with 1.8TB/s bidirectional bandwidth for accelerating the integration of custom XPU silicon with NVIDIA's rack-scale systems.
Consequently, Marvell establishes itself as a major facilitator in the AI semiconductor ecosystem by fusing its proprietary silicon capabilities with NVIDIA's NVLink Fusion technology. The partnership uses the company’s wide range of semiconductor products, including silicon photonics, die-to-die interconnects, SerDes, and sophisticated packaging.
Additionally, the company should offer a direct integration path with NVIDIA's dominating AI ecosystem, even though other businesses also provide ASIC design services. This solves a significant issue for hyperscalers: taking advantage of custom silicon's benefits while being compatible with pre-existing AI infrastructure. UBS has since reiterated a Buy rating on the stock, buoyed by the company’s underlying business prospects. The bullish stance comes against the backdrop of the stock imploding 43% year to date and underperforming the overall market.
While we acknowledge the potential of Marvell Technology, Inc. (NASDAQ:MRVL) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRVL and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None.
