Yahoo Financeยท2025-11-03 20:24Core Insights - Marvell Technology's stock increased nearly 6% following Amazon's announcement of significant growth in its Trainium processor business, which Marvell exclusively manufactures [1] - Amazon's Trainium2 has become a multibillion-dollar business, experiencing a 150% growth quarter-over-quarter, with full customer subscription [1][2] - Marvell is strategically positioned within Amazon's AI infrastructure development, with the deployment of nearly 500,000 Trainium2 chips in Amazon's Project Rainier supercomputer and plans for over one million chips by year-end [2] Financial Projections - Amazon's capital expenditure forecast for 2025 has risen to $125 billion, benefiting Marvell's custom ASIC business and optical connectivity products from the 2021 Inphi acquisition [4] - Analyst projections indicate that Marvell's custom ASIC segment will grow by 18% to 20% in 2026, supported by ongoing collaboration with Amazon on next-generation 2nm Trainium4 technology [5] Market Position - Marvell has transformed from a diversified chip maker into a leader in AI infrastructure, with its data center business now accounting for 75% of total revenue, up from 34% two years ago [7] - J.P. Morgan analyst reaffirmed an "Overweight" rating on MRVL stock with a price target of $120, emphasizing Marvell's strategic positioning as cloud providers increase AI spending [3]