Marvell stock surges 11% on Nvidia partnership, $2B investment

Investing.com -- Marvell Technology (NASDAQ: MRVL) shares jumped 11% on Tuesday following the announcement of a strategic partnership with NVIDIA and a $2 billion investment from the chipmaker.

The partnership connects Marvell to NVIDIA’s AI factory and AI-RAN ecosystem through NVIDIA NVLink Fusion, a rack-scale platform that enables customers to develop semi-custom AI infrastructure using the NVIDIA NVLink ecosystem.

Under the agreement, Marvell will provide custom XPUs and NVLink Fusion-compatible scale-up networking, while NVIDIA will supply supporting technologies including Vera CPU, ConnectX NICs, Bluefield DPUs, NVLink interconnect and Spectrum-X switches, and rack-scale AI compute.

The partnership also includes collaboration on silicon photonics technology and aims to transform telecommunications networks into AI infrastructure with NVIDIA Aerial AI-RAN for 5G/6G.

"The inference inflection has arrived. Token generation demand is surging, and the world is racing to build AI factories," said Jensen Huang, founder and CEO of NVIDIA. "Together with Marvell, we are enabling customers to leverage NVIDIA’s AI infrastructure ecosystem and scale to build specialized AI compute."

Matt Murphy, chairman and CEO of Marvell, commented that the expanded partnership reflects the growing importance of high-speed connectivity, optical interconnect and accelerated infrastructure in scaling AI.

The NVLink Fusion platform enables customers developing custom XPUs to build heterogeneous AI infrastructure fully compatible with NVIDIA systems, allowing integration with NVIDIA GPU, LPU, networking and storage platforms.

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