Latest news with #NVLinkFusion
Yahoo
3 days ago
- Business
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Marvell's AI Bet: Will NVLink and UALink Drive Custom Chip Wins?
Marvell Technology MRVL is enhancing its role in artificial intelligence (AI) infrastructure by expanding its custom chip capabilities. Marvell continues to integrate its custom compute platform with new components that improve performance, scalability, and integration across large-scale the first quarter of fiscal 2026, Marvell reported record Data Center revenues of $1.44 billion, up 76% year over year. The growth was driven by the rapid scaling of custom AI silicon. To support continued momentum, Marvell recently announced multiple strategic additions to its custom silicon May 2025, Marvell partnered with NVIDIA to offer NVIDIA's NVLink Fusion technology to customers deploying Marvell's custom cloud platform silicon. This enables custom XPUs to connect with NVIDIA's rack-scale hardware architecture. Marvell noted that its custom silicon with NVIDIA NVLink Fusion offers its customers greater flexibility and options in developing next-generation AI infrastructure. This announcement reflects that MRVL's custom chips are gaining credibility and traction, even among companies like the same month, Marvell introduced its new multi-die packaging solution, which is built on its proprietary interposer technology. The solution is already in production for a customer-specific XPU program. The platform enables more efficient die-to-die interconnect, lowers power consumption, enhances yield and lowers product this month, Marvell introduced a third addition to its custom platform — Ultra Accelerator Link (UALink) scale-up solution. The solution delivers an open-standards-based scale-up interconnect platform with high compute utilization and low latency. UALink is paired with Marvell custom silicon capabilities. This allows compute vendors to build solutions, including custom accelerators with UALink controllers and custom switches, enabling optimal performance for rack-scale these additions support Marvell's push to enable full rack-level custom infrastructure. Moreover, with new components entering production, Marvell is positioned to play a crucial role in powering the next generation of large-scale AI systems. Advanced Micro Devices AMD is advancing its rack-level AI solutions through its acquisition of ZT Systems. This acquisition enables Advanced Micro Devices to reduce deployment time for hyperscalers by combining AMD's CPUs, GPUs, and networking components. This move also enables Advanced Micro Devices to accelerate time to market for its OEM and ODM AVGO is aggressively scaling its AI networking portfolio. In the second quarter of fiscal 2025, AVGO's AI networking revenues jumped 170% year over year and now comprise 40% of its total AI semiconductor revenues. Broadcom also introduced the Tomahawk 6 switch with a 102.4 Terabits per second switch capacity. It is designed to enable AI clusters of over 100,000 AI accelerators to be deployed in 2 tiers. This move enables Broadcom to achieve better performance in training its next-generation frontier models through lower latency, higher bandwidth and lower power. Shares of Marvell Technology have plunged 31.9% year to date against the Electronics - Semiconductors industry's growth of 6.4%. Image Source: Zacks Investment Research From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 7.36X, lower than the industry's average of 8.15X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for MRVL's fiscal 2026 and fiscal 2027 earnings implies year-over-year growth of 77.71% and 27.73%, respectively. The earnings estimates for fiscal 2026 and fiscal 2027 have been revised upward in the past 30 days and seven days, respectively. Image Source: Zacks Investment Research MRVL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
11-06-2025
- Business
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ALAB Stock Shines as AI Infrastructure Ties With NVIDIA Deepen
Astera Labs ALAB is gaining market as a critical enabler of next-generation AI and cloud infrastructure, driven by its expanding portfolio of high-performance connectivity solutions. In the first quarter of 2025, revenues surged 144% year over year, banking on strong demand across its Aries, Taurus, Leo and Scorpio product lines. Historically known for its Aries PCIe retimers supporting NVIDIA AI servers, Astera Labs has rapidly expanded its portfolio to now encompass full-rack solutions, including Scorpio Fabric Switches, Aries 6 Retimers and Smart Gearboxes, Taurus Ethernet modules and Leo CXL controllers designed to address both scale-up (intra-server, accelerator cluster) and scale-out (inter-server, data center-wide) connectivity challenges. The company's COSMOS software suite further enhances this hardware synergy, enabling advanced diagnostics, fleet observability and performance optimization. Additionally, the company has expanded its strategic collaboration with NVIDIA NVDA to support the NVLink Fusion ecosystem for Blackwell-based MGX platforms and has stepped up as a promoter member and board participant in the UALink Consortium, helping to advance open, high-performance interconnect standards for accelerator-rich AI clusters. AMD and QCOM — Two Other Prominent Players Working in This Niche Advanced Micro Devices AMD: The company's expanding portfolio of EPYC CPUs and Instinct GPUs is aligned with the PCIe 6.0 standard, which is becoming foundational in next-generation AI infrastructure. As data center and AI rack architectures migrate toward PCIe 6.0 to meet rising bandwidth and latency demands, AMD's adoption of this standard is indirectly fueling demand for high-speed interconnect solutions like those offered by Astera Labs. Qualcomm QCOM: Qualcomm is making a bold move into the AI data center connectivity space with its recent $2.4 billion acquisition of Alphawave, a company specializing in high-speed connectivity IP. This strategic acquisition signals Qualcomm's intention to become a more prominent player in AI infrastructure, a domain where Astera Labs is already deeply entrenched. Additionally, Qualcomm is now partnering with NVIDIA in the NVLink Fusion initiative, placing it in direct competition with companies like Astera Labs that are focused on enabling high-bandwidth, low-latency interconnects for AI racks. ALAB's Price Performance and Valuation Astera Labs has rallied 32.9% in the past three months compared with the industry's 15.8% growth and the sector's 12.3% rise. The S&P 500 index, meanwhile, has improved 7.9% during the said period. Share Price Comparison: ALAB Image Source: Zacks Investment Research Astera Labs is presently trading at a forward 12-month price-to-sales of 19.02X, which is below its 1-year median of 19.95X. However, it remains overvalued compared to the industry. Image Source: Zacks Investment Research ALAB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Astera Labs, Inc. (ALAB) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-06-2025
- Business
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Can MRVL's Custom AI Silicon Keep Driving Data Center Wins?
Marvell Technology's MRVL custom AI silicon chips are experiencing massive traction among hyperscalers, which is evident in the high-growth rate of Data Center end-market revenues. The custom AI silicon chips mainly account for Marvell's custom AI XPUs and electro-optics solutions. Marvell Technology's data center segment has taken the lead among all its segments with 76% year-over-year revenue growth in the first quarter of fiscal 2026, driven by robust demand in custom AI accelerators, including AI XPUs and custom high bandwidth memory chips Looking ahead, Marvell Technology plans to rapidly expand its customer base by winning more hyperscalers that want to differentiate, cut costs and seek more control over their AI infrastructure. To achieve this milestone, MRVL has collaborated with NVIDIA and leveraged the latter's NVLink Fusion platform to build comprehensive rack-scale AI solutions. To match the demand, Marvell is heavily investing in its custom silicon programs to rapidly scale production. Marvell has also introduced a 2.5D advanced packaging platform built in-house that will enable it to cater to custom XPUs that ensure reduced power consumption while lowering overall product cost for customers. Marvell Technology also develops custom application-specific integrated circuit designs for AI, cloud data center and OEM customers using its advanced 5nm and 3nm processes like 112G XSR serializer/de-serializer (SerDes), Long Reach SerDes, PCIe Gen 6 SerDes. These capabilities enable MRVL to stay ahead of its competitors in the custom AI silicon space. Broadcom AVGO is one of the leading suppliers of custom silicon solutions for data center, service provider, and enterprise networking customers. Broadcom's advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs. Broadcom's Semiconductor segment, which accounts for its custom silicon solutions, grew 11% year over year in the first quarter of fiscal 2025. Advanced Micro Devices AMD is another player in the custom silicon solutions and AI accelerator space with its semi-custom SoC offerings and Instinct Accelerators that power numerous data centers. Advanced Micro Devices' reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers. While Broadcom and Advanced Micro Devices are formidable players in the custom silicon space for AI acceleration, Marvell's move toward the 2.5D packaging platform, optimized for AI XPUs, and its deep partnership with NVIDIA give it an edge over them. This will ensure that its Custom AI Silicon chips will keep driving its data center wins amid high demand. Shares of Marvell have lost 40% year to date against the Electronics - Semiconductors industry's growth of 5.6%. Image Source: Zacks Investment Research From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 6.58X, lower than the industry's average of 8.25X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Marvell's fiscal 2026 and 2027 earnings implies year-over-year growth of 77% and 28%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward in the past seven days. Image Source: Zacks Investment Research Marvell Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Advanced Micro Devices, Inc. (AMD) : Free Stock Analysis Report Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report Broadcom Inc. (AVGO) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
04-06-2025
- Business
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Marvell Delivers Marvelous AI Growth, But Stock Sinks -- Should Investors Jump In?
Marvell turned in strong Q1 results and issued solid guidance. However, investors worry about its future relationship with Amazon. The company appears to have an opportunity to get involved with custom chips for Microsoft. 10 stocks we like better than Marvell Technology › Shares of Marvell Technology (NASDAQ: MRVL) sank, despite the company once again displaying robust data center and artificial intelligence (AI) revenue growth, when it reported its fiscal Q1 earnings results on May 29. The stock is now down about 43% year to date, as of this writing. Let's dig into the chipmaker's latest results and forecast for the current fiscal year to see if investors should buy the dip. Marvell has been a solid beneficiary of the AI infrastructure build-out, supplying networking chips, connectivity solutions, and storage controllers used to build and scale servers for AI workloads. The company also works closely with cloud computing providers on custom chips, helping them design their own AI chips and contributing IP (intellectual property) used in Amazon's (NASDAQ: AMZN) custom chips. Most recently, Marvell announced a partnership with Nvidia to support NVLink Fusion, which allows customers to integrate Marvell's custom AI chips into Nvidia rack-scale systems. However, investors are worried about the company's future relationship with Amazon, and Marvell management wasn't able to soothe investor fears. While not calling out Amazon by name, Marvell CEO Matt Murphy said it was continuing to work with Amazon on its next-generation custom AI chip, including securing 3-nanometer wafer and advanced packaging capacity. Murphy said he expects revenue from Amazon to continue to grow over a multiyear and multigenerational basis, but that its customers could pursue "multiple paths to meet their requirements." This means that Amazon may be working with competitors or just looking to do everything in-house for future custom chip iterations, which would put some risk to future revenue. Marvell is also supposedly involved with Microsoft's new custom AI chip called Maia, with J.P. Morgan analysts saying that Marvell is supplying IP to the chips and recently won a deal to be part of the third generation of the new chip. This program is still very much in its early stages, and if successful, could drive significant revenue growth. Turning to Marvell's results, its overall revenue soared by 63% year over year to $1.9 billion, while its adjusted earnings per share (EPS) surged from $0.24 a year ago to $0.62. Those results were just ahead of the midpoint of management's outlook for adjusted EPS of $0.61 on revenue of $1.88 billion. Data center revenue skyrocketed 76% year over year in the quarter to $1.44 billion. The company credited the growth to rapid scaling by AI chip customers and strong shipments of electro-optics products. Data center revenue accounted for 76% of its sales in the quarter. Its other end markets saw solid rebounds in the quarter, led by a 93% revenue increase in carrier infrastructure to $138 million. Consumer revenue, meanwhile, climbed 50% year over year to $63 million, while enterprise networking revenue rose 16% to $178 million. Automobile revenue fell 2% to $76 million. Most of these businesses saw a big improvement from the large year-over-year declines they experienced in fiscal 2025's Q4. BusinessSegment FY 2025Q4 Revenue FY 2025 Q4Increase (YOY) FY 2026Q1 Revenue FY 2026 Q1Increase (YOY) Data center $1.37 billion 78% $1.44 billion 76% Networking $171 million (35%) $178 million 16% Carrier infrastructure $106 million (38%) $138 million 93% Consumer $89 million (38%) $63 million 50% Automobile $86 million 4% $86 million (2%) Total $1.82 billion 27% $1.9 billion 83% Data source: Marvell Q1 and Q4 earnings press release. YOY = year over year. Marvell management expects the recovery in the enterprise networking and carrier infrastructure markets to continue. It's also looking for a nice 50% sequential jump in consumer revenue, led by gaming. The company generated operating cash flow of $333 million for the quarter, and it repurchased $340 million in stock in the quarter. Looking ahead, Marvell management guided for fiscal 2026 second-quarter revenue of $2 billion, plus or minus 5%, which represents year-over-year growth of about 57%. It is looking for adjusted EPS of $0.62 to $0.72. Its custom AI chips are once again expected to be its main growth driver. Trading at a forward price-to-earnings (P/E) ratio of under 22 times fiscal 2026 estimates, Marvell's stock is cheap, given the type of growth the company is producing. The question, though, is whether its main source of revenue growth will disappear in a few years. There has been much speculation that Amazon is also working with Taiwan-based AIchip for future generations of custom AI chips, but there is a lot of uncertainty about what this means for Marvell. Based on Marvell's comments and a five-year deal they have in place, signed last December, it does not appear like its relationship with Amazon is going away anytime soon, but there is a risk it could play a lesser role in future custom chip designs. Meanwhile, the company's speculated award with Microsoft is promising, but there is not much track record with how its chips will be received. However, this could be a substantial opportunity. Given the uncertainties, Marvell is a bit of a speculative stock. However, given its valuation and growth opportunities with Microsoft, I think risk-tolerant investors can take a small position. Before you buy stock in Marvell Technology, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Marvell Technology wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $656,825!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $865,550!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 JPMorgan Chase is an advertising partner of Motley Fool Money. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, JPMorgan Chase, Microsoft, and Nvidia. The Motley Fool recommends Marvell Technology and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Marvell Delivers Marvelous AI Growth, But Stock Sinks -- Should Investors Jump In? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
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Nvidia Aims To Bypass Big Tech Dependency By Going Straight To International Governments, As It Did Recently With Saudi Arabia
Nvidia (NASDAQ:NVDA) is looking beyond Big Tech as it strategizes global expansion by doing deals with foreign governments, the Financial Times reports. As the innovative chip company behind artificial intelligence, demand for Nvidia's technology crosses all boundaries — from neighboring Big Tech companies in Silicon Valley to foreign governments. Following Nvidia's recently announced multibillion-dollar chip agreement with as a part of a deal with the U.S. government to build a large AI infrastructure, the FT reports that such 'sovereign AI' deals are a part of Nvidia's strategy to be less reliant on 'hyperscalers' — large cloud computing companies accounting for over half its data center revenue. Don't Miss: Hasbro, MGM, and Skechers trust this AI marketing firm — Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — To do this, Nvidia is allowing access to its technology from up-and-coming rivals to enable them to foster relationships with cloud service providers like Amazon (NASDAQ:AMZN) and Google, FT reports. The outlet adds that business relationships with Cisco (NASDAQ:CSCO), Dell (NYSE:DELL), and Hewlett-Packard Enterprise Company (NASDAQ:HPE) will help them enable enterprise customers to create their own IT infrastructure instead of outsourcing to the cloud. 'I'm more certain [about the business opportunity beyond the big cloud providers] today than I was a year ago,' Nvidia CEO Jensen Huang told the FT in March. Trending: 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. As part of its expansion, Nvidia sees robots as pivotal to introducing AI to practical real-world uses in robotics, drug development and autonomous navigation. The company presented employee-authored literature at a Singapore conference covering these sectors, highlighting the partnerships with Google, GE HealthCare (NASDAQ:GEHC), and General Motors (NYSE:GM), FT said. Experts question whether the scope of the deals Nvidia just made in Saudi Arabia is feasible on an ongoing basis. 'Is every country going to announce a $10 billion or $50 billion data center like the Saudis? Of course not,' Seaport Research analyst Jay Goldberg told Reuters. 'They're sort of running out of obvious deals.' Huang, however, remains bullish: 'AI infrastructure is being built out (everywhere) – that's one of the reasons I'm traveling around the world... AI infrastructure is going to be a part of society,' he told explained at the recent Computex conference in Taipei that new technology, rather than mega infrastructure deals with sovereign governments, was the key to the company's expansion, Reuters reported. Specifically, Huang spoke about NVLink Fusion, which allows companies to access Nvidia's AI infrastructure using custom chips, creating a scalable architecture. Nvidia's NVLink Fusion platform will encourage companies to build compliant hardware and thus drive demand for Nvidia AI network and data centre parts, Reuters says. It means that Nvidia can be a crucial part of a country or company's growth without having to carry all the weight of expansion. Read Next:Inspired by Uber and Airbnb – Deloitte's fastest-growing software company is transforming 7 billion smartphones into income-generating assets – Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Nvidia Aims To Bypass Big Tech Dependency By Going Straight To International Governments, As It Did Recently With Saudi Arabia originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Sign in to access your portfolio
