Latest news with #customchips
Yahoo
12 hours ago
- Business
- Yahoo
15 AI stocks to watch outside of the Magnificent 7
Some investors may be wondering if they missed out on Nvidia's (NVDA) artificial intelligence (AI) run. Futurum CEO Daniel Newman joins Morning Brief to highlight 15 alternative AI plays, including Broadcom (AVGO), Palantir (PLTR), and Oracle (ORCL), that could benefit from the next wave of custom chip demand. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. According to the Bank of America Global Fund Manager survey, Long Mag 7 is one of the most crowded trades on Wall Street, but my next guest has some alternative ways to play artificial intelligence. I want to bring in Dan Newman, who is the Futurum CEO. Great to have you here back in studio with us. Brad, good to see you. So let's talk about this because a lot of people have already piled into Mag 7, but. You believe that there are other places that are non-MG 7 that they could find some exposure to generative AI and this broader kind of thesis that's driven the market for the past two years. I mean there's been nothing that is, you know, deemed more attention than AI. You've seen just the news in the last couple of days, whether it's Microsoft wanting to, or sorry, Meta offering hundreds of millions of dollars to potential researchers to join. Their AI talent team or you know you saw Marvel came out yesterday with the custom AI silicon road map and their stock is popping. We could probably talk a little bit about that, um, but you're seeing it really across the board and then of course so many people have kind of felt like, well did I miss Nvidia and so the the the question I get asked most by, you know, by clients, by the, by retail investors and why we basically launched the Future on AI 15 which. Is the extended list beyond is what else is out there besides maybe Nvidia, Microsoft, and Meta. What are the plays, you know, and so you can hear about kind of what are the difference difference makers. So for instance, uh, companies like Evago, you know, Broadcom, um, you know, there's a $500 billion t we believe in the next 4 years for custom AI silicon, um. Nvidia's gonna get a lot of that, you know, Nvidia gets 92% of that market right now, we believe, but they're not going to keep 92% in our opinion. They're probably gonna fall to maybe 80%, 70%. So it still means Nvidia, by the way, can triple to $300 billion. There's gonna be $100 billion that's gonna go into custom. And so we have Avago, for instance, as our number two name to play because that $100 billion dollar opportunity that sits with the Google custom chips they're doing, it sits with custom chips that companies like OpenAI are planning to do. So that's one of the plays of course you've seen uh Brad TSMC. TSMC, you know, people think about it as a foundry and of course it's a very big name and there's a lot of dollars invested in it right now, but people don't always make that connection that whether it's invi making chips, metama chips, Microsoft and Amazon doing their custom chips, all of them are dependent right now on TSMC and as much as I think the US needs a strong intel, we aren't there yet. So right now TSMC. All the pricing power so it sits at the very top of our list. And then there's some eclectic names. I'll pause here, but basically there's eclectic names like Oracle that we put on there. You saw what a pop they've gotten, but they've absolutely nailed this AI transformation and they are in a perfect position. And just yesterday, XAI and Oracle made a big announcement together that they're going to be using Oracle's infrastructure to train XAI models.
Yahoo
14 hours ago
- Business
- Yahoo
Amazon's Powerful AWS Custom Chip To Get An Upgrade - Why Is It Important?
Inc (NASDAQ:AMZN) Amazon Web Services could soon announce an update to its Graviton4 chip, sparking a rivalry with Intel Corp (NASDAQ:INTC) and Advanced Micro Devices (NASDAQ:AMD). The chip could include 600 gigabits per second of network bandwidth, CNBC reported on Wednesday. Benzinga has reached out to Amazon for its comment. Hyperscalars like Amazon, Microsoft Corp (NASDAQ:MSFT), Alphabet Inc (NASDAQ:GOOGL), and Meta Platforms (NASDAQ:META) migrated towards custom chips to curtail costs, tackle compatibility issues, and address supply crises. Trending: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — According to Amazon, its latest cloud computing chip, Graviton4, offers significant advancements in performance and energy efficiency. It's the fourth generation of AWS's custom-engineered data center chips, first introduced in 2018. Graviton4, based on Arm-architecture, boasts four times the performance of Graviton1 and is even more energy-efficient than its predecessor, Graviton3. With 73 billion transistors, it's being adopted by major customers like SAP and Epic Games for high-performance and reliable cloud experiences. This innovation, alongside other custom AWS chips like Trainium and Inferentia for AI, underscores Amazon's leadership in cloud computing technology. Amazon manufactures Graviton4 central processing unit at its Annapurna Labs in Austin, Texas. Rami Sinno, director of engineering at Amazon Web Services (AWS) Annapurna Labs, cited strong demand for chips that outpaced the supply. AWS Senior Director Gadi Hutt told CNBC about Amazon's initiatives to provide an alternative to Nvidia Corp's (NASDAQ:NVDA) costly graphics processing units. Hutt told CNBC. that Anthropic's Claude Opus 4 AI model launched on Trainium2 GPUs and Project Rainier. Trainium3 is coming up in 2025, he has committed $8 billion to Anthropic. Also, Amazon chief Andy Jassy recently highlighted the company's extensive leveraging of Generative AI to drive value. Jassy highlighted Generative AI's crucial role within AWS for developers and optimizing internal functions such as fulfillment and customer service. He also pointed to developing AI agents to automate tasks and accelerate innovation. As Amazon commits huge spending and Capex to AI, it is imperative that it design its own chips based on custom needs rather than relying on NVIDIA. Jassy stated that this AI-driven transformation might reduce the corporate workforce in the coming years. Read Next: Invest early in CancerVax's breakthrough tech aiming to disrupt a $231B market. Back a bold new approach to cancer treatment with high-growth potential. If there was a new fund backed by Jeff Bezos offering a 7-9% target yield with monthly dividends would you invest in it? Photo by Deep Pixel via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Amazon's Powerful AWS Custom Chip To Get An Upgrade - Why Is It Important? originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
19 hours ago
- Business
- Yahoo
Wall Street rallies behind Marvell Technology stock after blockbuster AI showcase
Wall Street rallies behind Marvell Technology stock after blockbuster AI showcase originally appeared on TheStreet. After a topsy-turvy start to the year, AI stocks just got a fresh power-up, courtesy of Marvell Technology's () custom chip party. Yesterday's 'Custom AI Investor Day' brought a ton of action, and potentially an antidote for an industry limping into midyear. 💵💰💰💵 After over two years of bombastic gains, the AI rally cooled off this year, shifting to a show-me story amid U.S.–China tensions and high interest rates. Nevertheless, AI isn't staying down for long—but who would've guessed Marvell would lead its next leg higher. Marvell's AI Investor Day event yesterday was a resounding success on multiple levels. It's booming custom application-specific integrated circuit, or ASIC, chips, deep cloud wins, and next-gen memory tech stamps its authority as a serious AI infrastructure diving into the specifics, though, it's important to understand Marvell's role in the AI landscape. Unlike Nvidia, which leads with AI GPUs, Marvell has carved out a niche as the behind-the-scenes partner powering custom chips and cloud infrastructure for the hyperscalers. Simply put, it essentially provides the critical plumbing and tailored silicon pieces that hyperscalers need to run AI at scale. That involves stuff like high-speed networking, specialized memory technologies, and custom accelerators/ASICs. Take Amazon's Trainium chips, for instance. Marvell uses its chip design skills, multi-die packaging, and advanced IP integration to bring a custom AI processor to market. Hyperscalers want custom ASICs, but few have the full in-house firepower to create them. That's where Marvell steps in with its deep IP portfolio and a full-stack platform for data infrastructure chips. Marvell's transformation, to say the least, has been nothing short of spectacular. Just a couple of years ago, we had it talking up storage, 5G, and enterprise. Today, it's AI and cloud all the way. Data center is its biggest growth driver, and Marvell's transformation into an AI-first company has been hard to miss. Now, back to the headline-grabbing event and Wall Street pundits lavishing over it. To kick things off, Marvell's booming custom-ASIC business stole a lot of the spotlight. Custom AI chips brought in a staggering $650 million in fiscal 2025 (11% of total sales). That accounted for over a quarter of data center chip sales, with that share expected to hit 50%—a multi-billion-dollar growth engine in the making. Next, we have Marvell's big leap in memory technology. A 2nm custom SRAM packing 6 gigabits at an industry-leading bandwidth, slashing standby power while shrinking die size, making AI chips leaner and faster. As hyperscalers continue to scale up, this kind of custom memory is the push they need. Perhaps the biggest flex for Marvell at the event was its major hyperscaler wins. It revealed 18 socket wins across hyperscalers, including the likes of Microsoft, Amazon, Meta, and Google. Twelve are already in production, with more expected to ramp up through 2026–27. Moreover, Marvell continues powering next-gen AI hardware for Amazon's Trainium chips and Microsoft's Maia accelerator. More On AI: Nvidia CEO sends blunt 7-word message on quantum computing Sticking With This Marvell Price Target as We Look to Lock in Big Gains Veteran analyst who predicted quantum computing stocks rally unveils IonQ stock price target To top it all off, Marvell's leadership discussed the immense potential of its data center semiconductor business. They expect the total addressable market to rise from roughly $21 billion last year to $75 billion by 2028 (a 29% CAGR). Those estimates may seem lofty, but they feel a lot more palatable when backed by third-party projections. For instance, Grand View Research estimates the global AI market could grow at a 36.6% CAGR from 2023, reaching $1.8 trillion by 2030. Similarly, PwC estimates AI could potentially add $15.7 trillion to the global economy by the end of the current decade. Following the event, Marvell is drawing praise from all sides. TheStreet Pro Portfolio's lead portfolio manager, Chris Versace, is sticking with his $115 price tag on Marvell (which has over a 50% upside from current levels).Versace has stayed persistent with Marvell—buying the dips instead of bailing out. He feels that even though margins might get squeezed early, the real profit will come once custom chips scale. Though less upbeat, Bank of America's Vivek Arya raised his price target on Marvell to $90, up from $80. He feels the company's earnings power hitting $8 a share, 60% above Wall Street analysts' consensus. Morgan Stanley doubled down on its lofty price target of $133, while Deutsche Bank called Marvell 'one of the few players' tailor-made for the booming custom silicon market. Deutsche's price target? A relatively conservative $85. Following the event, Marvell stock is up 7.5% to $75.36 at the time of writing. The past six months have been rough, but Marvell Technology's stock has surged 17% in the past month. Its current stock price is roughly 41% below its 52-week high of $127.48. It's worth mentioning that Marvell stock is trading at 36x non-GAAP earnings—approximately 19% below its 5-year average. Also, its price-to-sales ratio sits at 9.3x, trailing the 5-year norm by 11%.Wall Street rallies behind Marvell Technology stock after blockbuster AI showcase first appeared on TheStreet on Jun 18, 2025 This story was originally reported by TheStreet on Jun 18, 2025, where it first appeared.
Globe and Mail
a day ago
- Business
- Globe and Mail
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 systems. During 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 platform. In 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 NVIDIA. In 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 cost. Earlier 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 AI. Together, 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. How Competitors Fare Against MRVL 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 partners. Broadcom 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. MRVL's Price Performance, Valuation and Estimates Shares of Marvell Technology have plunged 31.9% year to date against the Electronics - Semiconductors industry's growth of 6.4%. MRVL YTD Price Return Performance 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. MRVL Forward 12-Month P/S Ratio 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. MRVL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Zacks Names #1 Semiconductor Stock It's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom. With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report
Yahoo
2 days ago
- Business
- Yahoo
15 AI stocks to watch outside of the Magnificent 7
Some investors may be wondering if they missed out on Nvidia's (NVDA) artificial intelligence (AI) run. Futurum CEO Daniel Newman joins Morning Brief to highlight 15 alternative AI plays, including Broadcom (AVGO), Palantir (PLTR), and Oracle (ORCL), that could benefit from the next wave of custom chip demand. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. According to the Bank of America Global Fund Manager survey, Long Mag 7 is one of the most crowded trades on Wall Street. But, my next guest has some alternative ways to play artificial intelligence. I'm going to bring in Dan Newman who is the Futurum CEO. Great to have you here back in studio with us. Hey Brad, good to see you. So, let's talk about this because a lot of people have already piled into Mag 7, but you believe that there are other places that are non Mag 7 that they could find some exposure to generative AI and this broader kind of thesis that's driven the market for the past two years. Yeah, I mean there's been nothing that has, you know, deemed more attention than AI. You've seen just the news in the last couple of days, whether it's Microsoft wanting to, or sorry, meta offering hundreds of millions of dollars to potential researchers to join their AI talent team. Or, you know, you saw Marvell came out yesterday with the custom AI Silicon roadmap and their stock is popping, we'll probably talk a little bit about that. Um, but you're seeing it really across the board. And then of course so many people have kind of felt like, well, did I miss Nvidia? And so the the question I get asked most by, you know, by clients, by the by retail investors and why we basically launched the Futurum AI 15, which is the extended list beyond is what else is out there besides maybe Nvidia, Microsoft, and meta? What are the plays, you know? And so, you hear about kind of what are the difference difference makers? So for instance, uh, companies like Avago, you know, Broadcom. Um, you know there's a $500 billion TAM, we believe, in the next four years for custom AI Silicon. Yeah. Um, Nvidia's going to get a lot of that, you know, Nvidia gets 92% of that market right now, we believe. Right. But they're not going to keep 92% in our opinion. They're probably going to fall to maybe 80%, 70%. So it still means Nvidia, by the way, can triple to $300 billion. There's going to be $100 billion that's going to go into custom. And so we have Avago, for instance, at as our number two name to play, because that $100 billion opportunity, that sits with the Google custom chips they're doing, sits with custom chips that companies like Open AI are planning to do. So that's one of the plays. Of course, you're seeing, uh, Brad, TSMC. TSMC, you know, people think about it as a foundry, and of course, it's a very big name and there's a lot of dollars invested in it right now, but people don't always make that connection that whether it's Nvidia making chips, meta making chips, Microsoft, and Amazon doing their custom chips, all of them are dependent right now on TSMC. And as much as I think the US needs a strong Intel, we aren't there yet. So, right now, TSMC has all the pricing power. So it sits at the very top of our list. And then there's some eclectic names, I'll pause here, but basically there's eclectic names like Oracle, that we put on there. You saw what a pop they've gotten, but they've absolutely nailed this AI transformation and they're in a perfect position. And just yesterday, XAI and Oracle made a big announcement together that they're going to be using X Oracle's infrastructure to train XAI models. Right.
