NEW YORK, June 1, 2026, 15:03 EDT
Marvell Technology stock jumped around 9% to $223.36 in afternoon Nasdaq action, up nearly $18 and pushing its market cap close to $199.5 billion. The gain brought new focus to one of this year’s active AI infrastructure trades.
Marvell’s gain followed a push into AI data center hardware, with speed, power, and congestion now bigger headaches for cloud groups packing clusters of chips. That’s now drawing interest from investors willing to pay for not only AI chips but also the switches and optical links that connect them.
Marvell said Monday it’s rolling out the Teralynx T100, a 102.4 Tbps switch chip aimed at AI and cloud data centers. Tbps means trillion bits per second. The company said the new chip uses less power than competing products and will start sampling customers this quarter. Rishi Chugh, Marvell’s vice president and general manager for data-center switches, said hyperscalers want networks to “optimize latency, power and scalability simultaneously.” Alan Weckel, co-founder and technology analyst at 650 Group, called the chip a “significant” step for latency, power efficiency, radix scalability and total cost of ownership. Radix refers to how many ports a switch supports. Marvell Technology, Inc.
The stock got a lift from the broader market. The Nasdaq Composite added 0.69%. The Philadelphia SE Semiconductor Index rose 1.5% as Nvidia rallied after showing off a new AI PC chip. Broadcom is set to report results Wednesday, and investors were watching.
Marvell shares jumped after the company’s numbers last week. Marvell posted fiscal Q1 revenue of $2.418 billion, up 28% on the year, and forecasted Q2 revenue around $2.70 billion, give or take 5%. CEO Matt Murphy pointed to “exceptional AI-related bookings” and said growth in revenue should “continue accelerating” through fiscal 2027. Marvell Technology, Inc.
Custom silicon is the larger play now—chips built for cloud clients, plus high-speed interconnect. Marvell says custom chip sales will be above $10 billion in fiscal 2029. Last week Reuters said Marvell raised its 2028 revenue target to around $16.5 billion, up from $15 billion. Morningstar’s William Kerwin said this call “implies $5 billion in incremental revenue,” and flagged “another robust growth year in FY29.”
Marvell is in a small but key segment of the market. Nvidia is still the leader in AI processors, and Broadcom is Marvell’s main competitor in custom chips for cloud. Marvell says as AI workloads grow, the need for specialized silicon and fast networking rises, not just more GPUs.
Barclays bumped its Marvell price target to $275 from $150 after the latest results, sticking with its Overweight call. The analysts pointed to Marvell’s improved outlook and momentum in data-center sales. Barclays flagged the company’s prepayments for packaging, substrates, wafers, and optical supply, saying execution now hinges on locking in enough advanced components.
Marvell’s trade looks messy. The company has flagged that its revenue base is heavily tied to a handful of big clients—10 customers make up 82% of its projected fiscal 2026 net sales. Marvell has also cautioned about timing of orders, export restrictions, customer chip plans, and potential supply issues. Any delay in AI spending, a lost design contract, or a major customer opting to make its own chips could hit Marvell’s valuation fast.
Marvell is seen as a secondary AI play, with investors betting on its role in the data-center ramp. The question now is if today’s product update and last week’s outlook will convert into real shipments quickly enough to back up the big move in the shares.
