Shares of Marvell Technology (NASDAQ: MRVL) surged roughly 7% on Thursday, closing near $311 after briefly touching a record high of about $330 during the session.
The rally coincided with a Bloomberg report that Amazon Web Services (NASDAQ: AMZN) is in early talks to sell its custom Trainium AI chips directly to outside companies for use in their own data centers.
Until now, Trainium chips have been available only to customers renting computing power through AWS, making any external sale a significant strategic shift for the cloud giant.
Marvell has been one of the key partners helping Amazon design the Trainium chip, giving it a direct stake in how widely that silicon is deployed across the industry.
Amazon’s AI chief Peter DeSantis confirmed that the current generation of the chip is largely sold out, framing external sales as a way to reach more customers rather than cannibalize AWS revenue.
“We view AI infrastructure as rapidly evolving. And we’re constantly looking at ways to get to more customers,” DeSantis said in an interview with Bloomberg.
Marvell’s data center revenue reached approximately $1.83 billion in its fiscal first quarter of 2027, the period ended May 2, 2026, representing 27% year-over-year growth and about 76% of total company revenue.
Overall revenue hit a record $2.4 billion, up 28%, with management guiding for fiscal second-quarter revenue of approximately $2.7 billion, representing roughly 35% growth.
CEO Matt Murphy said the company raised its revenue outlook for both fiscal 2027 and fiscal 2028, citing what he called exceptional AI-related bookings driving demand well ahead of this week’s developments.
A Wall Street analyst also raised their 12-month price target for MRVL stock from $260 to $385, citing the company’s optical-networking opportunity, adding further momentum to Thursday’s move.
The stock has now more than tripled in 2026 and is set to join the S&P 500 before the open on Monday, June 22, providing yet another near-term catalyst for investors watching the name.
However, risks remain, including reports suggesting Amazon has handed design work on the newer Trainium3 and Trainium4 chips to Taiwanese rival Alchip Technologies, a shift neither company has officially confirmed.
Marvell’s forward price-to-earnings ratio currently sits at approximately 70, a valuation that already prices in years of strong growth and leaves limited room for any unexpected setbacks.
The combination of a potentially expanded Trainium market, an S&P 500 inclusion, and record revenue figures has energized investors, though questions about future chip design contracts and stretched valuation continue to cloud the longer-term picture.
