TLDR
- Marvell Technology (MRVL) stock jumped over 7% after Nvidia confirmed its $12.9 billion acquisition of Hugging Face
- Nvidia previously took a $2 billion stake in Marvell and the two companies have an existing strategic partnership
- Marvell posted record Q2 revenue of $2.74 billion, up 37% year-over-year, with Data Center sales rising 46% to $2.17 billion
- Marvell raised its Fiscal 2027 revenue outlook to $12 billion and Fiscal 2028 guidance to $18 billion
- Wall Street gives MRVL a Strong Buy consensus with an average price target of $302.33, implying around 35% upside
Marvell Technology (MRVL) stock jumped more than 7% on Friday, hitting as high as $223.67 during the session, after Nvidia confirmed it will acquire open-source AI platform Hugging Face for $12.9 billion.
Marvell Technology, Inc., MRVL
The deal gave the broader AI chip sector a lift, but Marvell had extra reason to move. Nvidia already holds a $2 billion stake in Marvell and the two companies have a formal partnership to collaborate on silicon photonics and make their technologies compatible. That tie-up lets customers build AI infrastructure using Marvell’s XPUs within Nvidia’s NVLink ecosystem.
Nvidia CEO Jensen Huang noted that more than 50% of Nvidia’s business is driven by open models, which helps explain the strategic logic behind buying Hugging Face. That platform has over 18 million users, 3 million models, and is used by more than 200,000 companies.
Exciting day for NVIDIA and @huggingface.
Open models strengthen safety and cybersecurity, accelerate innovation and diffusion, and enable sovereignty. They allow every developer, startup, university, industry and country to build with, customize and benefit from AI.
Thank you…
— Jensen Huang (@JensenHuang) September 3, 2026
Because Nvidia and Marvell’s businesses are intertwined, a stronger Nvidia means more tailwinds for Marvell.
Business Keeps Accelerating
Marvell’s most recent quarter added fuel to the rally. Fiscal Q2 revenue rose 37% year-over-year to a record $2.74 billion, beating guidance by $39 million. Data Center revenue climbed 46% to $2.17 billion, making up 79% of total sales. Adjusted EPS came in at $0.94, up 40%.
Adjusted operating margin hit 36.6%, and adjusted operating income crossed $1 billion for the first time. CEO Matt Murphy described AI-related bookings as “exceptionally robust.”
For Q3, management is guiding for revenue of approximately $3.15 billion, which would represent more than 50% growth. Data Center revenue alone is expected to rise roughly 75%.
Marvell raised its full-year Fiscal 2027 revenue outlook to $12 billion, implying around 45% growth, and set Fiscal 2028 guidance at $18 billion, implying another 50% increase.
Photonics Is the Next Leg
Marvell is positioning itself as a key player in the shift from copper to optical connectivity inside AI data centers. As AI clusters grow into multi-rack systems, copper struggles with power consumption, signal quality, and bandwidth. Optical connections offer a faster, lower-loss alternative.
Marvell sells PAM4 and coherent DSPs, silicon photonics, and Ethernet switches. Its Ara and Aquila products support 1.6T links. The recent acquisition of Celestial AI adds a Photonic Fabric product that connects processors and shared memory across large computing domains. Celestial revenue is expected to reach a $500 million annualized run rate by Q4 of Fiscal 2028, doubling to $1 billion a year later.
Marvell also acquired Polariton for 3.2T-and-beyond photonic devices and XConn for PCIe and CXL switching.
An expanded agreement with Google could cover as much as $120 billion of revenue through Fiscal 2033.
Wall Street currently rates MRVL a Strong Buy, based on 21 Buy ratings and five Holds, with an average price target of $302.33.
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