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SAN JOSE - Empower Semiconductor announced Wednesday a collaboration with Marvell Technology, Inc. (NASDAQ: MRVL), a prominent player in the Semiconductors & Semiconductor Equipment industry with a market capitalization of $60.3 billion, to develop integrated power solutions for Marvell’s custom silicon platforms. According to InvestingPro data, Marvell has shown strong momentum with 15 analysts recently revising their earnings expectations upward.
The partnership aims to transform power delivery systems into smaller, faster silicon chips that work closely with processors. These solutions target the increasing power demands of artificial intelligence (AI) and cloud data centers, a strategic move for Marvell as analysts expect its sales to grow significantly this year. The company has demonstrated its market strength with a 21.6% revenue growth in the last twelve months.
According to the companies, the collaboration will focus on moving voltage regulation from traditional board-level designs to silicon-integrated or near-chip solutions. This approach is designed to reduce power transmission losses and improve efficiency.
"With integrated voltage regulation, we’re delivering power where it’s needed—right at the point of load—with exceptional density, precision and efficiency," said Tim Phillips, CEO of Empower Semiconductor, in a press release statement.
Will Chu, senior vice president and general manager of Custom Cloud Solutions at Marvell, noted that "placing integrated voltage regulators under, near, or inside the package delivers greater performance and greater efficiency."
The joint effort leverages Empower’s FinFast technology and vertical power delivery architecture to create pre-validated power solutions that can support the current demands of next-generation processors.
Empower Semiconductor, based in Silicon Valley, specializes in integrated voltage regulators, while Marvell is known for its custom silicon solutions for data infrastructure.
The companies did not disclose financial terms or specific product release timelines in their announcement. For investors seeking deeper insights into Marvell’s financial health and growth prospects, InvestingPro offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks, including detailed metrics and expert analysis that help transform complex data into actionable investment intelligence.
In other recent news, Marvell Technology has been the focus of multiple analyst reports following its Custom AI Investor Event. Wolfe Research maintained its Outperform rating with a $90 price target, citing Marvell’s ambitious projection of a $94 billion AI market, with a potential 20% market share. The company announced new projects with emerging hyperscalers, aiming for substantial datacenter and custom XPU revenue by 2028. However, Wolfe Research highlighted investor concerns about the sustainability of project revenue despite Marvell’s confidence in ongoing customer relationships.
UBS reiterated its Buy rating and set a $100 price target, noting the company’s expanding customer base in custom computing solutions, including engagements with major players like Amazon, Google, and Microsoft. While UBS expressed some skepticism about Marvell’s projected AI growth rate, it maintained a positive outlook due to the expanding customer base. Benchmark also kept its Buy rating with a $95 price target, emphasizing Marvell’s potential to capture significant market share in the Data Center and custom compute segments by 2028.
Loop Capital reaffirmed its Buy rating and $90 price target, highlighting Marvell’s strategy to develop custom AI ASICs for cloud service providers. The firm believes these solutions could soon become a multi-billion-dollar revenue stream. Stifel, maintaining its Buy rating with an $80 price target, described Marvell’s custom AI platform as having a "highly formidable moat," emphasizing the company’s extensive customer engagement and accelerated product launch schedules. Overall, these reports reflect a cautiously optimistic outlook on Marvell’s growth prospects in the custom AI space.
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