Small AI Chip Maker Surpasses Intel in Value

Small AI chip maker Marvell Technology is making waves in the market, surpassing industry giant Intel in market capitalization. This growth comes after a stellar earnings report and news of a deeper partnership with Amazon. Marvell’s stock price, already up 60% this year, rose an additional 18% following Tuesday’s announcement, briefly pushing its market value above $100 billion for the first time.

Despite Intel generating significantly more revenue, Marvell’s market capitalization has now exceeded that of Intel’s due to its impressive performance. Marvell’s data center business is experiencing rapid growth, with data center sales nearly doubling to $1.1 billion in the recent quarter. This surge in data center revenue is expected to account for 72% of total revenue by the end of January, up from 40% in the previous year.

Marvell’s future is looking bright, especially with a new five-year partnership with Amazon to design custom AI chips. As Amazon expands its cloud computing business and lessens its reliance on other providers like Nvidia, Marvell’s AI chip business is expected to thrive. Analysts predict that Marvell’s AI custom revenue will more than double in the upcoming fiscal year, driven by the new Trainium chip. This growth is projected to boost Marvell’s annual revenue to over $8 billion by fiscal 2026, a 40% increase from this year’s estimates.

In conclusion, Marvell Technology’s recent success and strategic partnerships position the company as a strong contender in the AI chip market, paving the way for continued growth and innovation in the industry.