Marvell stock pops 9% as Nvidia takes $2 billion stake, continuing run of similar bets
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shares Marvel Technology increased by more than 9% after Nvidia announced his plans Invest $2 billion At the semiconductor company as businesses race to meet growing demand for artificial intelligence.
Nvidia increased by 1.5 percent
The deal connects Marvell to Nvidia’s AI ecosystem, making it easier for customers to develop the infrastructure. Both companies will join forces on silicon photonics technology.
“The demand for producing tokens is increasing and the world is racing to build artificial intelligence factories,” Nvidia CEO Jensen Huang said in a statement. “Together with Marvell, we enable our customers to leverage NVIDIA’s AI infrastructure ecosystem and scale to build custom AI computes.”
Nvidia has bet $2 billion on tech companies in recent months.
This includes investments summary, CoreWeave, Consistent And Lumentum. Nvidia recently invested $2 billion. Nebius Group. The AI cloud company announced plans to build one of Europe’s largest data centers on Tuesday.
The leading chipmaker has been a major beneficiary of the AI craze that has swept Wall Street in recent years, thanks to graphics processing units, or GPUs, that support large language models.
Marvell is another big winner of the race. Shares rose this month after the company issued firm guidance and called for accelerating revenue growth into 2027 as demand for artificial intelligence grows.
“Our expanded partnership with NVIDIA reflects the growing importance of high-speed connectivity, optical interconnect, and accelerated infrastructure in scaling AI,” said Marvell CEO Matt Murphy.
Tune in at 9 a.m. ET as Nvidia CEO Jensen Huang joins CNBC’s “Squawk on the Street” to talk about the deal. Watch in real time on CNBC+ or CNBC Pro streaming.
