Marvell is the lead design and manufacturing partner for AWS's custom Trainium AI chips, making it a direct beneficiary of any broadening of that platform. Volume in MRVL reached roughly 188 million shares, more than five times its three-month daily average of around 36 million.

The news marks a significant strategic shift for AWS, which has historically kept its homegrown silicon inside its own cloud. Amazon's AI chief Peter DeSantis told Bloomberg that the company is now in active discussions with potential buyers, though he declined to name them.

AWS spokesperson Doron Aronson confirmed the direction, saying: "While we've historically declined requests to sell chips directly, Andy noted it's quite possible we'll sell racks of them to third parties in the future."

CEO Andy Jassy foreshadowed the move in his April shareholder letter, writing: "If our chips business was a standalone business, and sold chips produced this year to AWS and other third parties, our annual run rate would be ~$50 billion. There's so much demand for our chips that it's quite possible we'll sell racks of them to third parties in the future."

That $50 billion figure is what lit a fire under Marvell Thursday, signaling that Amazon sees its chip ambitions as a standalone business-scale opportunity, not just an internal cost-reduction tool.

Marvell was recently added to the S&P 500 and received a $2 billion investment from Nvidia, giving it multiple AI tailwinds heading into the second half of the year.

Amazon (NASDAQ: AMZN) also gained, closing up 2.89% at $244.37, as investors reassessed the revenue potential of a chip division that has operated largely in the background.

Notably, Nvidia (NASDAQ: NVDA) closed up 2.86% at $210.51 rather than falling on the competitive news, suggesting the market reads Amazon's external chip-sales push as evidence of broadening AI infrastructure demand rather than a direct threat.

Investors will get a more detailed read on Marvell's custom-chip revenue trajectory when the company reports Q2 results in August. Management commentary on any design wins or supply agreements tied to Amazon's Trainium platform is likely to be the focal point of that call.