MRVL's Modular Packaging Tech: Can it Transform AI Accelerators?

Core Insights - Marvell Technology is advancing its semiconductor technology by utilizing 5nm and 3nm CMOS technologies and is transitioning to 2nm and below, incorporating innovations such as gate-all-around transistors and backside power delivery [1] - The company is enhancing its packaging capabilities with modular redistribution layer (RDL) interposer technology, which allows for the development of larger multi-die AI accelerator solutions [2][3] - Marvell anticipates significant growth in the data center semiconductor market, projecting a total addressable market of $94 billion by 2028, with accelerated custom compute offerings expected to reach $55.4 billion at a CAGR of 53% from 2023 to 2028 [4][10] Technology and Innovation - The RDL interposer technology provides shorter die-to-die connections, reducing latency and improving power efficiency, while also allowing for the seamless replacement of defective dies, which lowers costs and increases yields [3] - This technology is compatible with HBM3/3E and XPU-type chips, and is expected to be qualified for the upcoming HBM-4 [3] Competitive Landscape - Competitors such as Broadcom and Advanced Micro Devices are also active in the custom silicon solutions and AI accelerator space, with Broadcom's semiconductor segment growing 11% year over year [5][6] - Despite the competition, Marvell's advancements in 2.5D packaging and modular RDL interposer technology position it favorably in the market [7] Financial Performance and Valuation - Marvell's shares have decreased by 34.5% year to date, contrasting with the 15% growth of the Electronics - Semiconductors industry [8] - The company trades at a forward price-to-sales ratio of 7.02X, which is lower than the industry's average of 8.72X [12] - Earnings estimates for fiscal 2026 and 2027 indicate year-over-year growth of 77.7% and 27.73%, respectively, with recent upward revisions [13]