SANTA CLARA, Calif. - Marvell (NASDAQ:MRVL) Technology, Inc. (NASDAQ: MRVL), a $80 billion market cap company specializing in data infrastructure semiconductor solutions, has announced the expansion of its strategic relationship with Amazon (NASDAQ:AMZN) Web Services (AWS). The company's stock has shown remarkable momentum, delivering over 54% returns year-to-date. According to InvestingPro analysis, Marvell maintains strong liquidity with current assets exceeding short-term obligations. This five-year, multi-generational agreement will see the two companies collaborate on a range of AWS products and utilize AWS cloud infrastructure to drive innovation and excellence in accelerated infrastructure.
The partnership involves Marvell supplying AWS with a broad spectrum of data center semiconductors, including custom AI products, optical digital signal processors, active electrical cable DSPs, PCIe retimers, data center interconnect optical modules, and Ethernet switching silicon solutions. This collaboration is set to enhance AWS's ability to improve their data center compute, networking, and storage offerings, which in turn, is expected to provide AWS customers with increased efficiency, reduced total ownership costs, and quicker time to market.
Marvell's adoption of a cloud-first approach includes the use of AWS for electronic design automation (EDA) in the cloud, which will enable the company to expedite its silicon design process through AWS's advanced and scalable compute capabilities. The partnership aims to address the bursty nature of advanced node silicon design workloads with the scale and elasticity of AWS's compute infrastructure.
Matt Murphy, Chairman and CEO at Marvell, emphasized the significance of the partnership with AWS in cloud computing and data center semiconductors. He stated that AWS's EDA solutions would help Marvell quickly scale its silicon design process and capabilities, thus delivering accelerated infrastructure with industry-leading time to market. While the company currently trades at a premium valuation multiple, InvestingPro data reveals multiple positive indicators, including strong return potential and moderate debt levels. Subscribers can access 13 additional ProTips and comprehensive financial metrics through InvestingPro's detailed research reports.
Matt Garman, CEO at AWS, highlighted the importance of leading-edge semiconductors in building a cost and power-efficient cloud, mentioning that the collaboration with Marvell would allow AWS to deploy a comprehensive semiconductor portfolio and specialized networking hardware to meet the infrastructure needs of their customers. Despite reporting a negative EPS in the last twelve months, analysts tracked by InvestingPro expect the company to return to profitability this year, with projected earnings of $1.47 per share for fiscal 2025.
The information is based on a press release statement from Marvell Technology, Inc.
In other recent news, Marvell Technology has been the recipient of several positive analyst reviews. Evercore ISI has upheld an Outperform rating on the company and raised its price target to $122.00 from $98.00. The firm's confidence is based on anticipated growth and a forecasted return to profitability this year, with an expected earnings per share (EPS) of $1.47.
Rosenblatt also maintains a Buy rating on Marvell, with a price target of $120, expecting the company to surpass expectations in its upcoming earnings report. The firm's optimism is driven by robust growth in artificial intelligence (AI), particularly in data center ASICs, networking, and electro-optics.
Furthermore, Susquehanna has increased its price target for Marvell to $110, maintaining a Positive stance. The firm notes potential for higher results driven by Inphi (NASDAQ:IPHI) and custom ASIC segments, and strong AI demand.
Oppenheimer has also increased its price target for Marvell to $110, maintaining an Outperform rating. The firm cites potential growth driven by custom compute and networking/optics sectors.
Deutsche Bank (ETR:DBKGn) has reiterated a Buy rating on Marvell, maintaining its price target at $90. The firm anticipates a robust third-quarter fiscal year 2025 report for Marvell, driven by significant growth in artificial intelligence revenues and a steady recovery in Carrier/Enterprise Networking.
These recent developments point to a positive sentiment among analysts towards Marvell Technology.
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