Stock market today: Dow in fresh record close as Powell signals rate cut incoming
SANTA CLARA, Calif. - Marvell Technology, Inc. (NASDAQ: MRVL), a technology company with a market capitalization of $53.33 billion, has unveiled its latest advancements in data infrastructure technology, featuring the industry’s first 1.6T PAM4 DSP for Active Electrical Cables (AECs) and an 800G version for increased connectivity reach. According to InvestingPro data, analysts maintain a strong buy consensus on Marvell, with price targets ranging from $81 to $140. Collaborating with partners such as 3M, Amphenol, Broadex, Luxshare-Tech, and TE Connectivity, Marvell will demonstrate these solutions at the Optical Fiber Communication Conference and Exhibition (OFC) 2025.
The introduction of these AEC DSPs is in response to the growing demand for artificial intelligence (AI), machine learning (ML), and cloud computing services, which require significant enhancements in data center performance, efficiency, and return on investment. The AECs, which utilize DSP technology to enable copper cables to sustain longer distances and greater bandwidth, are suited for in-rack scale-up fabrics as bandwidth requirements increase. The market for AEC silicon is projected to expand at an annual growth rate of 61%, reaching $1.3 billion by 2029. This aligns with Marvell’s expected revenue growth, as InvestingPro forecasts show a 42% revenue increase for FY2026. For investors seeking deeper insights, InvestingPro offers 14 additional exclusive tips and comprehensive analysis in their Pro Research Report.
The Alaska A 1.6T AEC DSP employs Marvell’s PAM4 technology with a 200G/lane SerDes, supporting the needs of 1.6T switches and servers expected to dominate the market in the coming years. Its equalization engine facilitates cable reaches greater than three meters, surpassing the traditional reach limitations of in-rack copper connections.
The Alaska A 800G AEC DSP, built with a 100G/lane SerDes, extends copper connectivity to seven meters, enabling new server architecture configurations by allowing switch racks to be placed in the middle of rows. Without AEC DSPs, passive copper cables at 800G are limited to two meters.
Alan Weckel, co-founder of 650 Group, highlighted the transformative impact of Marvell’s technology on connectivity, while Xi Wang, vice president and general manager at Marvell’s Connectivity Business Unit, emphasized the significance of copper connectivity in optimizing infrastructure.
Industry support for Marvell’s AEC DSP technology is strong, with leading cable manufacturers like Amphenol, Broadex, Luxshare-Tech, Molex, and TE Connectivity acknowledging the collaborative effort to meet the high-bandwidth and low-latency demands of AI infrastructure. Despite recent market volatility causing a 14% decline in the stock price over the past week, InvestingPro analysis indicates the company maintains a FAIR financial health score, with a strong cash flow position and moderate debt levels. Discover more detailed financial metrics and expert analysis in the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
The Marvell Alaska A 1.6T PAM4 DSPs for AECs are now generally available, marking a significant development in the data infrastructure technology landscape. This news is based on a press release statement from Marvell.
In other recent news, Nvidia is preparing to unveil its Blackwell Ultra GPU, with mass production anticipated in the latter half of 2025. The company’s upcoming GPU Technology Conference will also feature previews of its next-generation Rubin GPU architecture, slated for 2026. Meanwhile, Monolithic Power Systems (MPWR) is expected to provide updates on its supplier status for Nvidia’s Blackwell Ultra, which could impact its market position. Investors are particularly interested in whether MPWR will regain its role as a supplier, as this could signify a positive shift for the company.
Marvell Technology has filed a new prospectus supplement with the SEC for the issuance and sale of securities, although specifics on the types of securities or the size of the offering were not disclosed. Analyst firm CFRA has adjusted Marvell’s stock price target from $130 to $90 but maintains a Strong Buy rating, citing optimism about Marvell’s growth in AI infrastructure and custom silicon programs. Similarly, Jefferies has revised Marvell’s price target to $100 while retaining a Buy rating, highlighting the company’s strategic partnership with Amazon and its advancements in 3nm semiconductor technology. These developments reflect Marvell’s ongoing efforts to remain competitive in the semiconductor industry.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.