Marvell's Rise: A Threat to NVIDIA?

Can Marvell Technology's custom AI chips disrupt NVIDIA's reign, or is the GPU giant's ecosystem too strong? Dive into the battle shaping AI’s future!

Author

Frank Angus
December 09, 2024

In partnership with

Ever wonder if the king of the AI chip world, NVIDIA, might face a challenger?

While NVIDIA reigns supreme, thanks to its powerful GPUs, something interesting is happening.

Marvell Technology is quietly gaining ground by offering a different flavor of AI chips that hyperscalers seem to love.

Let’s break it all down.

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NVIDIA: Still the AI Chip King

NVIDIA has been the undisputed leader, driving the AI revolution with its powerful ecosystem.

It’s not just about chips; it’s about their full-stack approach:

  • Cutting-edge GPUs (like Hopper and Blackwell).

  • Software platforms (CUDA and beyond).

  • Networking solutions and strong developer support.

But here’s the catch: NVIDIA’s next-gen Blackwell GPUs have a 12-month backlog.

That’s leaving some customers searching for alternatives.

Enter Marvell Technology: The ASIC Specialist

Marvell isn’t trying to dethrone NVIDIA.

Instead, they’re carving out their own niche with custom-designed ASIC (Application-Specific Integrated Circuit) chips.

These chips excel at specific AI tasks and often come with a lower price tag.

CEO Matthew Murphy calls this a “new era of growth” for Marvell, as hyperscalers like Microsoft, Amazon, and Google are snapping up their custom AI solutions.

What’s an ASIC, Anyway?

Custom ASIC By Marvell Technology

ASICs are tailored for specific tasks, unlike general-purpose GPUs.

Marvell’s lineup includes:

  • Maia-2 ASIC: Powers Microsoft’s Azure for AI training and inference.

  • Axion ASIC: Built for Google Cloud, optimizing its unique workloads.

  • Trainium and Inferentia: Designed for Amazon Web Services (AWS) to handle machine learning and AI inference at scale.

These custom solutions are why Marvell is catching the attention of hyperscalers.

Big Growth Numbers

Marvell’s Q3 2024 results tell an exciting story:

  • Earnings per share (EPS): Beat estimates at $0.43.

  • Revenue: $1.52 billion, a 19% sequential rise.

  • Data Center Revenue: Skyrocketed 98% year-over-year, making up 73% of total revenue.

MRVL’s Revenue by Product from 2020 to 2024 by Statista

Even their non-data center business is showing signs of recovery, with enterprise and carrier revenue up 4% quarter-over-quarter.

What’s Next?

Marvell expects:

  • EPS between $0.54 and $0.64 for Q4 2025 (above analyst estimates).

  • Revenue in the range of $1.71 billion to $1.89 billion.

CEO Murphy remains optimistic about the strong demand for their custom AI silicon and interconnect products.

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MRVL’s Stock Breakout

Marvell’s stock recently formed an ascending triangle pattern, breaking through key resistance levels.

Shares surged, setting a 52-week high at $119.88.

Analysts see potential upside to $140, with 24 “Buy” ratings backing the stock.

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Let’s Hear From You!

Are ASIC chips like Marvell’s the future of AI, or is NVIDIA’s ecosystem too strong to beat?

Share your thoughts below.

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