Shares of Marvell Technology surged 8% after Nvidia announced plans to invest $2 billion in the semiconductor company as businesses race to meet ballooning artificial intelligence demand.
“Marvell is a marvelous investment,” Nvidia CEO Jensen Huang told CNBC’s “Squawk on the Street” on Tuesday. “Been dying to say that.”
The deal ties Marvell into Nvidia’s AI ecosystem, making it easier for customers to build on the infrastructure. Both companies will also join forces on silicon photonics technology and AI-focused telecommunications infrastructure.
Nvidia has made a string of $2 billion bets on technology companies in recent months.
That includes investments in Synopsys, CoreWeave, Coherent and Lumentum. Most recently, Nvidia invested $2 billion in Nebius Group. The AI cloud company on Tuesday revealed plans to build one of Europe’s largest datacenters.
Huang said each of the deals is “an expansion of our ecosystem.”
With Marvell, Huang said the partnership broadens access to semi-custom application-specific integrated circuits, or ASICs, often specialized for specific tasks. Hyperscalers are increasingly creating these chips to run AI workloads.
“We’re also smart investors,” Haung said. “We’ve expanded the [total addressable market] for both of us as a result of this partnership, and we want to be an investor in that.”
The leading chipmaker has been a major beneficiary of the AI craze that’s swept up Wall Street in recent years, due to its graphics processing units, or GPUs, which underpin large language models.
Marvell is another major winner in the race. Shares popped this month after the company issued robust guidance and called for accelerating revenue growth into 2027 as AI demand surges.
CEO Matt Murphy told CNBC that demand remains strong despite geopolitical tensions in the Middle East and that customers intend to continue deploying its tools.
“This just helps turbo-charge our growth and our opportunity, and gives us an infusion of capital that actually allows us to go do that,” he said. “We were doing great on our own, but this is a way for Marvell to actually just really take a leap forward.”
