TLDR
- Marvell Technology stock jumped ~13% Tuesday after announcing a strategic partnership with Nvidia
- Nvidia is investing $2 billion in Marvell as part of the deal
- The partnership connects Marvell’s custom AI chips (XPUs) with Nvidia’s NVLink Fusion platform
- BofA Securities raised its price target on MRVL from $110 to $125, maintaining a Buy rating
- Marvell also declared a quarterly dividend of $0.06 per share, payable April 30, 2026
Marvell Technology (MRVL) surged roughly 13% on Tuesday after the company announced a major strategic partnership with Nvidia (NVDA), which also committed a $2 billion direct investment in Marvell. NVDA stock climbed 5.6% on the same day.
Marvell Technology, Inc., MRVL
The deal centers on Nvidia’s NVLink Fusion platform, which will integrate Marvell’s custom AI chips — known as XPUs — with Nvidia’s processing and networking technology. This lets customers mix and match components from both companies when building AI infrastructure.
The two companies will also extend their optics collaboration through silicon photonics and co-packaged optics technology, with a roadmap stretching to 2028 and beyond.
On top of that, Marvell and Nvidia plan to work together on the telecom AI-RAN market, converting telecom networks into AI-ready infrastructure for 5G and future 6G deployments using Nvidia’s Aerial AI-RAN platform.
Nvidia CEO Jensen Huang said “the inference inflection has arrived” and that token generation demand is surging worldwide. He pointed to the Marvell partnership as a way to help customers scale specialized AI computing solutions within Nvidia’s ecosystem.
Marvell CEO Matt Murphy said the deal highlights the growing role of fast connections, optical links, and advanced infrastructure in AI scaling.
Why Nvidia Is Partnering With a Potential Competitor
Marvell’s XPUs handle heavy AI computations — a space where Nvidia’s GPUs also operate. Rather than treating Marvell as a pure rival, Nvidia is choosing to make its hardware compatible with Marvell’s chips.
The result is a system where customers can run both in the same AI stack. Nvidia broadens its ecosystem reach, while Marvell gets a stamp of validation and wider chip adoption.
BofA Securities raised its price target on MRVL to $125 from $110 following the announcement, keeping a Buy rating. The firm described Marvell as “the Switzerland of connectivity,” noting its support across PCIe, CXL, NVLink, UALink, and Ethernet standards — a wider net than rivals Broadcom and AMD.
The updated target is based on 28x calendar year 2027 estimated earnings, up from 25x previously, which BofA said is in line with AI peer valuations. MRVL currently trades at a P/E of 32.3 and holds a perfect Piotroski Score of 9.
More Recent Marvell Developments
Stifel reiterated a Buy rating and a $120 price target on MRVL after the Nvidia announcement. William Blair also reiterated an Outperform rating.
Marvell recently introduced the Structera S 60260, a 260-lane PCIe 6.0 switch aimed at AI data centers. The product followed Marvell’s acquisition of XConn Technologies and offers twice the lane density of existing market options.
Marvell also declared a quarterly dividend of $0.06 per share, payable April 30, 2026, to stockholders of record as of April 10, 2026.
According to TipRanks, MRVL carries a Strong Buy consensus rating based on 22 Buy ratings and 5 Holds over the past three months. The average analyst price target of $120.06 implies roughly 21% upside from Tuesday’s close.
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