Marvell Stock Just Hit a New High. A Quiet Amazon Decision Could Be Why.
A report that the cloud giant may start selling its custom AI chips to outside customers could broaden the market for the semiconductor specialist that designs them.
Marvell Stock Just Hit a New High. A Quiet Amazon Decision Could Be Why.
Overview
Shares of data infrastructure chip designer Marvell Technology (NASDAQ: MRVL) hit a record high of about $330 on Thursday before easing to close up roughly 7%, near $311. The move also came as one Wall Street analyst raised their 12-month price target for the stock from $260 to $385, citing the company's optical-networking opportunity. The stock has now more than tripled in 2026.
What's unusual is that one possible spark had little to do with anything Marvell itself announced. It came from a report about what Amazon (NASDAQ: AMZN) might do with a line of chips that Marvell helps design.
Details
Bloomberg reported that Amazon Web Services, the company's cloud computing arm, is in early talks to sell its custom Trainium artificial intelligence (AI) chips directly to outside companies for use in their own data centers. Until now, Trainium has been available only to customers renting computing power through AWS. Opening it up would mark a significant shift -- and another challenge to Nvidia, whose graphics processing units (GPUs) still anchor most AI computing.
Source
Originally published at www.fool.com.
