On Tuesday, Marvell (NASDAQ:MRVL) Technology Group Ltd. (NASDAQ:MRVL) shares maintained its Buy rating and a price target of $95.00, as confirmed by a leading industry firm.
The decision comes despite recent news that Intel Corp (NASDAQ:INTC) has expanded its custom chip partnership with Amazon (NASDAQ:AMZN) Web Services (AWS), which includes a multi-year, multi-billion dollar agreement involving various products and wafers from Intel. Among the products are an AI fabric chip built on Intel's 18A process and a custom Xeon 6 chip utilizing Intel's 3 process.
The expanded partnership is seen primarily as a boost to Intel's Foundry Services, which focuses on advanced packaging solutions. It was noted that the AI fabric chip is likely an internal development of AWS, while the custom Xeon CPU seems to be a collaborative design effort. Amazon is adopting a diverse strategy for data center and AI computing, integrating both ARM and x86 architectures.
Despite the significant developments between Intel and AWS, the impact on Marvell is expected to be minimal. Marvell has carved out a leadership role in supplying ARM-based critical IP building blocks through fully customized ASICs. The products announced in the Intel-AWS partnership are believed to align more closely with AWS's x86 compute roadmap rather than ARM technology, where Marvell excels.
The firm's stance on Marvell remains unchanged, reiterating a Buy rating for the company's stock. The analysis suggests that Marvell's position in the market, particularly in the ARM segment, continues to be robust, and the recent industry developments involving competitors are not expected to detract significantly from Marvell's standing or performance.
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