Marvell Technology (NASDAQ:MRVL) has been one of the tech sectors more puzzling stories this year. Despite delivering record second quarter results and showing signs of building a niche for itself in AI infrastructure, the stock has slumped 43% year-to-date - including a 15% slide in the last week - after management issued a cautious outlook for its data center business. Shares now trade at $64 apiece. The sell-off stems from lumpy orders for Marvell’s custom AI accelerators, but such quarterly volatility i ...

Core Insights - Amazon's partnership with Anthropic is projected to significantly boost Amazon Web Services (AWS) revenue in the coming years, with estimates suggesting billions in additional revenue from this alliance [1][5]. Revenue Projections - Morgan Stanley estimates that AWS could generate $1.28 billion in sales from Anthropic's use of its cloud services in 2025, potentially increasing to nearly $3 billion in 2026 and $5.6 billion in 2027 as Anthropic's AI workloads expand [2]. - Anthropic's revenue is expected to grow from $4 billion this year to $10 billion in 2026 and $19 billion in 2027, with 75% of related costs attributed to AWS cloud services [4]. Investment and Valuation - Amazon has invested $8 billion in Anthropic, which is now valued at $13.8 billion according to Amazon's latest financial statement [3]. Growth Factors - Morgan Stanley highlights the partnership with Anthropic as a key driver for AWS's expected revenue growth acceleration this year, alongside AWS's solid growth trajectory of 16% to 19% annually over the last five quarters [5][6]. - The increasing enterprise demand for generative AI infrastructure, as evidenced by Microsoft Azure's success, suggests that AWS could similarly benefit as organizations ramp up their AI initiatives [11]. Competitive Position - Morgan Stanley's CIO survey indicates that Amazon could gain market share over Microsoft and Google Cloud in the near term, enhancing confidence in AWS's strong market position [12].