New York, June 18, 2026, 17:03 EDT
- Marvell Technology jumped 7.27% to close at $310.58 on Thursday. Shares gained after news that Amazon Web Services is in early talks to sell its Trainium AI chips to other firms.
- KeyBanc hiked its Marvell price target to $385 from $260. Tower Semiconductor and Marvell said shipments topped five million coherent photonic integrated circuits.
- Marvell will enter the S&P 500 before the open on June 22. Nasdaq is shut Friday for Juneteenth.
Marvell Technology shares jumped Thursday, with investors eyeing Amazon’s potential move to grow its Trainium AI chip business. That could open up the market for custom silicon and Marvell’s high-speed networking gear.
Shares ended the day up 7.27% at $310.58, Investing.com said. Bloomberg and TechCrunch both reported that AWS is talking with potential buyers to sell its Trainium chips for use in other companies’ data centers. Trainium is Amazon’s own AI chip, designed to power AI model training and inference.
Timing is key. Marvell gets added to the S&P 500 on June 22, which can mean passive index funds have to buy to track the index. S&P Dow Jones Indices said Marvell is set to take Pool Corp.’s spot in the latest quarterly rebalance.
Amazon’s chip business is running at over $20 billion a year, CEO Andy Jassy said in April. Jassy wrote that the figure could reach around $50 billion if Amazon sold chips not just to AWS but also to outside buyers. “There’s so much demand for our chips,” he said, and added the company might look into selling racks of chips to third parties. Amazon News
Marvell isn’t getting an order tomorrow. That’s not the point. The move on the tape follows a Reuters story this month—Marvell and Broadcom design custom chips for cloud customers who want less Nvidia. Nvidia’s AI processors have high prices and tight supply. Amazon’s latest push is broader than just Amazon; it’s about the whole data center supply chain.
KeyBanc bumped its target for Marvell up to $385 from $260, pointing to data-center networking as the driver. Analyst John Vinh said “networking represents the most significant and durable growth opportunity,” according to Invezz. The firm kept its Overweight rating, meaning it expects the shares to beat their peer group. Invezz
Tower Semiconductor and Marvell said they have shipped over five million coherent photonic integrated circuits to Marvell customers. These chips use light to move and process data, which can be faster and use less power than only electrical signals for some data-center connections. “This milestone demonstrates the strength of our collaboration,” said Radha Nagarajan, Marvell’s senior vice president and chief technology officer for optical engineering. Tower Semiconductor
Marvell posted fiscal Q1 revenue of $2.418 billion, up 28% year over year. CEO Matt Murphy cited “exceptional AI-related bookings” and set the midpoint of second-quarter revenue guidance at $2.7 billion. Investors took notice. Marvell Technology, Inc.
Investors are looking past today’s numbers with Marvell. The stock was at $310.58, giving it a market cap near $277.4 billion and a price-to-earnings ratio of about 106.7, according to current data. That kind of multiple shows the market views Marvell as more than a standard chipmaker—as one of the companies building the backbones for AI: designing custom chips, switches, and optical links to push data through big clusters.
The risks are easy to spot. TechCrunch reports Amazon talks are still early, and Marvell lists risk factors on demand forecasts, exposure to big customers, risk that customers might build their own, possible supply snags, and trouble with design wins. If Amazon decides to mostly use Trainium in AWS, if there’s a slowdown in optical, or if higher revenue doesn’t deliver on margins, a stock trading at over 100 times earnings could drop in a hurry.
Nasdaq finished its normal session before the dateline. After-hours trading goes on until 8 p.m. Eastern and usually sees less volume and bigger swings. Nasdaq shuts down Friday for Juneteenth, so Marvell joins the S&P 500 on Monday, the next listed index move.
