Investing.com -- Marvell Technology Inc (NASDAQ:MRVL) shares surged over 2.7% Wednesday, paring some losses after CEO Matt Murphy forcefully denied reports that the semiconductor company had lost key business with hyperscale customers Amazon (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT).
In a Tuesday interview with CNBC’s Jim Cramer, Murphy aggressively pushed back on speculation that had sent the stock spiraling earlier in the week, insisting, “from Tuesday to Friday, nothing changed. We didn’t lose any business.”
Marvell initially rose after its recent earnings beat and strong data center outlook, plus the announcement of a $3.35 billion acquisition of Celestial AI. However, the stock gave back gains this week following two bearish reports:
-
Microsoft & Broadcom: The Information reported that Microsoft was discussing future custom chip designs with Broadcom Inc (NASDAQ:AVGO), potentially diverting future business from Marvell.
-
Amazon Loss: Benchmark downgraded MRVL to Hold, citing high conviction that Marvell had lost Amazon’s Tranium 3 and 4 chip designs to Alchip, explaining Marvell’s projected 20% XPU growth in 2026.
Murphy countered these concerns by stressing the data center business is "rock solid," and framed the subsequent stock drop as an investment opportunity.
Reinforcing its dedication to AI infrastructure, Marvell announced two strategic initiatives this week:
-
PCIe Retimer Adoption: The company announced industry adoption of its Alaska P PCIe retimers, essential components for high-speed, low-latency connections in advanced AI servers. Key partners like Super Micro Computer Inc (NASDAQ:SMCI) and TE Connectivity Ltd (NYSE:TEL) are integrating the technology.
-
’Golden Cable’ Initiative: Marvell launched a program to accelerate the Active Electrical Cable (AEC) ecosystem, critical for short-reach connectivity in high-density AI racks. This initiative provides validated designs and firmware to partners like Foxconn, aiming to capitalize on the AEC market.
Elsewhere, Stifel analyst Tore Svanberg reiterated a Buy rating and $114.00 price target on Wednesday, highlighting Marvell’s comprehensive approach.
“Marvell is building an end-to-end connectivity portfolio for AI infrastructure, uniquely spanning every layer of data-center interconnect,” Svanberg commented. This vertically integrated stack supports the full architecture of modern AI systems, lending weight to Murphy’s assertion that the underlying business remains robust.
