Marvell Technology (MRVL, Financial) just hit a jaw-dropping milestone, with its stock soaring to nearly $120— a nearly 100% return year-to-date—and a market cap now topping $105 billion. Yep, you read that right: Marvell has overtaken Intel (INTC, Financial) in market value, cementing its place as a serious player in the semiconductor world. Driving this rocket-like rise is its laser focus on AI chips and high-performance data centers, with the latter now making up a whopping 73% of its sales. CEO Matt Murphy's bold pivot into AI is paying off big time, and the company's deepening partnership with Amazon—especially its work on the Trainium AI chip—sets the stage for even more growth in the years ahead.
The buzz doesn't stop there. Marvell is cranking out cutting-edge tech, like its new 1.6 Tbps optical chipset and custom HBM compute architecture, both aimed squarely at AI-powered data centers. Analysts are piling on the praise: TD Cowen is sticking with its "Buy" rating, and Piper Sandler just upped its price target, calling Marvell's AI custom ASICs a game-changer. Financially, the numbers are just as impressive—19% sales growth quarter-over-quarter, fueled by a 25% spike in data center revenue. Sure, the company's debt is at $4.1 billion, but with strong cash flows and a clear growth trajectory, it's a blip, not a red flag.
But let's be real: high stakes mean high expectations. Marvell's shares are trading at higher multiple valuation than Nvidia (NVDA, Financial), which could make it vulnerable if the AI boom stumbles or major clients like Amazon hit pause on spending. Still, the company's relentless innovation and ability to outmaneuver industry heavyweights like Intel make it impossible to ignore. For investors betting on AI's long-term rise, Marvell isn't just riding the wave—it's helping to build it.
