Marvell Technology Group Ltd. (NASDAQ:MRVL) received a vote of confidence from Bank of America, which reiterated its 'Buy' rating and raised its price objective to $125 from $110, citing the company’s expanding role in artificial intelligence infrastructure following a new partnership with NVIDIA.
Shares of Marvell traded up almost 8% at about $106 on Wednesday afternoon.
The analysts wrote that the collaboration strengthens Marvell’s positioning across next-generation data center architecture. The partnership is designed to support heterogeneous AI systems through Nvidia’s NVLink Fusion ecosystem, while also extending cooperation in optical technologies and telecom-focused AI networks.
The analysts wrote that the agreement enables “NVLink-based full-stack rack-scale AI compute platform for MRVL-based XPU systems,” highlighting its potential relevance for large-scale cloud deployments.
Bank of America sees the partnership as reinforcing Marvell’s strategic role as a supplier of connectivity solutions across a wide range of industry standards. This “vendor-neutral” positioning allows the company to support multiple chip ecosystems, rather than being tied to a single architecture.
They wrote that the deal underscores Marvell’s role as “‘the Switzerland of connectivity’ supporting every standard across PCIe, CXL, NVLink, UALink, and Ethernet,” adding that deeper integration within Nvidia’s platform could improve visibility into future custom silicon programs.
The firms also outlined how the partnership combines Marvell’s custom XPU chips and networking technologies with Nvidia’s broader hardware stack, including CPUs, GPUs, and interconnects. The analysts wrote that this provides “full-stack rack-scale AI compute platform capability via NVLink,” positioning Marvell to benefit from increasing demand for scaled AI infrastructure.
Potential beneficiaries include major cloud customers such as Amazon and Microsoft, both of which are developing in-house AI chips expected to launch in the coming years.
On valuation, Bank of America said Marvell continues to trade below peers such as Advanced Micro Devices, despite similar exposure to long-term AI growth trends. This discount may not fully reflect the company’s expanding opportunities across connectivity, custom compute, and optical technologies, leaving room for potential re-rating, the analysts noted.
The bank maintained that Marvell’s diversified growth profile, improving profitability, and deeper involvement in the Nvidia ecosystem support a more constructive outlook.