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SANTA CLARA, Calif. - Marvell Technology, Inc. (NASDAQ: MRVL), a $55.79 billion market cap semiconductor company trading slightly below its Fair Value according to InvestingPro analysis, has announced a new multi-die packaging platform that aims to enhance the performance and reduce the cost of AI accelerator chips used in data centers. This platform, now entering production, is touted to offer a more efficient and cost-effective alternative to traditional silicon interposers used in multi-chip designs. The announcement comes as Marvell’s revenue reaches $5.77 billion, with a 4.71% growth rate.
The company’s latest innovation is said to enable the creation of multi-chip accelerator designs that are significantly larger than current single-die implementations, potentially leading to lower power consumption and higher chiplet yields. Marvell’s approach involves a modular RDL (re-distribution layer) interposer that allows for shorter die-to-die interconnects, which could translate to improved performance and reduced design costs.
According to Will Chu, senior vice president and general manager of Custom Cloud Solutions at Marvell, advanced packaging is essential for advancing compute density while managing power and other performance factors in AI infrastructure. The technology has been qualified with a major hyperscaler, indicating industry confidence in the solution. InvestingPro analysts anticipate continued sales growth this year, with multiple additional growth indicators available to Pro subscribers.
TechInsights, a market analysis firm, predicts a substantial growth in chiplet processor revenue, highlighting the importance of advanced packaging technologies for the sector’s evolution. Marvell’s platform integrates silicon and high-bandwidth memory stacks using an RDL interposer, which differs from traditional designs by being form-fitted to individual computing dies and connected by high-bandwidth paths.
The new packaging solution also allows for the integration of passive devices to minimize signal noise and supports the inclusion of multiple components within a single package. This could make it easier for hyperscalers to build more complex AI designs.
Marvell’s strategy involves collaborating with industry partners to develop custom semiconductor designs that optimize performance, efficiency, and value for data infrastructure. The company is actively working with leading hyperscalers to develop custom XPUs and CPUs, among other devices.
This announcement is based on a press release statement and contains forward-looking statements that are subject to risks and uncertainties. The actual performance and impact of Marvell’s multi-die packaging platform could differ from current expectations. With a beta of 1.82, investors should note the stock’s higher volatility compared to the market. For deeper insights into Marvell’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Marvell Technology Group Ltd. is set to release its earnings report, with Citi and Stifel analysts expecting results in line with their projections. Citi anticipates a potential earnings beat driven by enterprise networking strength, while Stifel forecasts April quarter revenue of $1.875 billion and suggests a possible upward revision for the July quarter. Meanwhile, Redburn-Atlantic initiated coverage with a Neutral rating and a $67 price target, expressing concerns over Marvell’s future role in AWS Trainium chip development due to emerging competition. Cantor Fitzgerald maintains a Neutral rating with a $60 price target, expecting slight outperformance in Marvell’s upcoming results, particularly in the AI Data Center segment. Susquehanna, while maintaining a Positive rating, has reduced its price target to $90, citing competitive risks and challenges in the Inphi and custom ASIC segments. Marvell plans to host a webinar on custom silicon technology, which could provide further insights into its strategic direction. The company faces a dynamic market landscape, with strong demand in data centers but increasing competition from firms like Alchip and NVIDIA. Investors will be closely monitoring Marvell’s earnings and strategic updates to assess its position in the semiconductor industry.
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