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SANTA CLARA, Calif. - Marvell Technology, Inc. (NASDAQ: MRVL), a semiconductor company with a market capitalization of $43.84 billion, today announced the successful integration of its Structera Compute Express Link (CXL) devices with processors from AMD and Intel, signaling a significant advancement in memory performance and scalability for cloud data centers. According to InvestingPro analysis, Marvell appears undervalued at current levels, with 20 analysts recently revising their earnings expectations upward for the upcoming period. The Structera CXL portfolio has been tested for compatibility with AMD EPYC CPUs and 5th Gen Intel Xeon Scalable platforms, demonstrating stability and high-performance memory expansion suitable for mass deployment.
The collaboration between Marvell, AMD, and Intel ensures that the CXL solutions can work seamlessly across various server configurations, providing data center operators with the flexibility to optimize their infrastructure according to specific workload requirements. This interoperability is expected to enhance memory efficiency, grant greater flexibility, and potentially reduce the total cost of ownership for cloud service providers. With annual revenue of $5.77 billion and operating with a moderate debt level, Marvell is well-positioned to execute on this strategic initiative.
Marvell’s Structera product family leverages CXL 2.0 technology to enable data centers to increase server memory capacity and bandwidth or add computing cores, supporting applications such as artificial intelligence and high-performance computing. The portfolio includes near-memory accelerators and memory expansion controllers that support DDR4 and DDR5 DIMMs, allowing for the deployment of large memory capacities while optimizing cost and power efficiency.
The integration of CXL 2.0 also facilitates cache coherency and memory pooling, which can lead to better resource utilization and reduced server count, contributing to more sustainable data center architectures.
Marvell’s partnership with AMD and Intel reflects a commitment to advancing a scalable and energy-efficient data center ecosystem. The collaboration aims to drive the benefits of CXL technology, with Marvell’s senior vice president and general manager of Custom Cloud Solutions, Will Chu, highlighting the collaboration’s role in fostering the growth of an open CXL ecosystem.
This development is based on a press release statement and represents a forward-looking claim subject to risks and uncertainties. The actual performance and impact of Marvell’s Structera CXL portfolio in real-world data center deployments may differ from these initial announcements. For deeper insights into Marvell’s financial health and growth prospects, including 12 additional exclusive ProTips and comprehensive valuation metrics, visit InvestingPro, where you’ll find detailed analysis in our Pro Research Report, part of our coverage of 1,400+ top US stocks.
In other recent news, Marvell Technology has been active with several significant developments. The company announced the sale of its Automotive Ethernet business to Infineon Technologies for $2.5 billion in cash, a move seen as strategic by analysts at firms like Stifel and Raymond James. This transaction is expected to close in 2025, with the proceeds potentially being used for stock buybacks. Analysts have noted that this divestiture aligns with Marvell’s focus on its core data center operations and AI initiatives.
Stifel analysts recently adjusted their price target for Marvell to $80 from $115, while maintaining a Buy rating, highlighting the company’s strong performance in AI-related revenues. They believe Marvell is on track to exceed its revenue targets for the coming years due to growing demand from cloud service providers. Additionally, Raymond James reiterated an Outperform rating with a $110 price target, emphasizing the favorable terms of the Infineon transaction.
Furthermore, Marvell announced that Raghib Hussain, President of Products and Technologies, will resign to become CEO of another company, effective May 2025. The company has assured stakeholders of a seamless transition plan to manage this leadership change. These recent developments indicate Marvell’s strategic shifts and focus on strengthening its position in the AI and data center markets.
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