Marvell Technology Surges to Record High on Strong AI Chip Demand

The chipmaker's Q3 earnings beat expectations, fueled by custom AI silicon growth and a major Amazon partnership.

Marvell's Q3 revenue rose 7% year-over-year to $1.52 billion, surpassing forecasts of $1.46 billion, with adjusted earnings of $0.43 per share beating estimates of $0.41.
The company raised its Q4 revenue guidance to $1.8 billion, driven by demand for its custom AI silicon, exceeding analysts' expectations of $1.65 billion.
Marvell's data center segment doubled its revenue year-over-year to $1.1 billion, now contributing over 70% of total revenue, up from 40% a year ago.
A new five-year partnership with Amazon Web Services will expand Marvell's role in providing custom AI chips and other semiconductors to support AI workloads and reduce costs.
Analysts have increased their price targets for Marvell, citing its position as a viable alternative to Nvidia in the growing AI chip market, though some flagged concerns over its valuation.