Marvell Technology (NASDAQ:MRVL) shares surged Thursday as investors bet on the company to deliver strong second-quarter results, scheduled for after the closing bell.
Optimism has been fueled by accelerating demand for artificial intelligence infrastructure and expectations that Marvell will capture a growing share of hyperscale spending.
The rally followed industry peer Nvidia’s (NASDAQ:NVDA) blockbuster results, which reinforced expectations of sustained demand from the artificial intelligence buildout.
Also Read: Marvell Set To Double AI Chip Sales To $4 Billion Next Year, Analyst Projects
Nvidia on Wednesday reported revenue of $46.74 billion for the second quarter, up 56% from a year earlier and ahead of consensus estimates of $46.02 billion. Adjusted earnings of $1.05 per share topped expectations of $1.01, while gross margins expanded to 72.7%, underscoring the company’s competitive strength.
On Wednesday, Nvidia CEO Jensen Huang confidently rebuffed fears of a slowdown in AI chip investment, stating that a multi-trillion-dollar market opportunity will unfold over the next five years.
His comments, reported by Reuters, come amid intense investor scrutiny over the sustainability of the recent spending boom on artificial intelligence.
Against this backdrop, analysts see Marvell as a key beneficiary of AI’s structural buildout. In a recent report, JP Morgan’s Harlan Sur reiterated a positive long-term outlook, arguing that Marvell is well placed to benefit from accelerating hyperscale capital expenditures and the structural shift toward AI-driven infrastructure.
He projects that the company’s AI-related business will more than double year-over-year to $4 billion in 2025 and continue to accelerate in 2026.
According to Sur, Marvell’s AI-related business is expected to accelerate in 2026, primarily due to progress on Trainium 3 at Amazon’s (NASDAQ:AMZN) Amazon Web Services (AWS) and the MAIA Gen 3 program at Microsoft (NASDAQ:MSFT).
Trainium 3, which operates on a 3nm process, is on track for a high-volume ramp in 2026, while the MAIA Gen 3 program, utilizing 2nm/3nm chiplets, is slated for production in 2027-2028.
Additionally, Marvell has secured multiple 2nm design wins for future products, further solidifying its position in the AI infrastructure market.
Wall Street sentiment reflects this optimism. Consensus estimates from 31 analysts place Marvell’s price forecast at $100.35, with Barclays setting the highest forecast at $150 in January 2025 and Redburn Atlantic the lowest at $67 in May.
Investor enthusiasm is also supported by rising capital expenditures from hyperscale customers such as Microsoft, Meta Platforms (NASDAQ:META), and Apple (NASDAQ:AAPL), which are ramping up investments in AI capacity.
Nvidia’s stellar performance has only intensified momentum across the broader data infrastructure sector, with Marvell positioned as a key supplier.
Price Action: MRVL stock is trading higher by 2.34% to $76.54 at last check Thursday.
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