Marvell launches first 2nm custom SRAM for AI infrastructure

SANTA CLARA, Calif. - Marvell Technology, Inc. (NASDAQ:MRVL), a $60.7 billion market cap semiconductor company and prominent player in the industry according to InvestingPro, announced Tuesday the development of what it calls the industry’s first 2nm custom Static Random Access Memory (SRAM) technology designed for AI infrastructure applications. The company, which has demonstrated strong revenue growth of 21.6% over the last twelve months, continues to trade above its Fair Value based on comprehensive analysis.

The new memory solution delivers up to 6 gigabits of high-speed memory while operating at speeds up to 3.75 GHz, according to the company’s press release. Marvell claims the technology enables chip designers to recover up to 15% of total die area in 2nm designs and reduces on-chip memory standby power consumption by up to 66% compared to standard SRAM at equivalent densities. This innovation comes as 15 analysts have recently revised their earnings estimates upward for the upcoming period, as reported by InvestingPro, which offers detailed analysis through its comprehensive Pro Research Report, available for over 1,400 US stocks.

Will Chu, senior vice president of Custom Cloud Solutions at Marvell, stated, "Custom is the future of AI infrastructure. The methodologies and technologies used by hyperscalers today to develop cutting-edge custom XPUs will percolate to more customers, more classes of devices, and more applications."

The custom SRAM joins Marvell’s expanding custom technology platform, which includes previously introduced CXL technology for adding terabytes of memory to cloud servers and custom HBM technology that reportedly increases memory capacity while reducing space and power requirements.

Alan Weckel, co-founder of the 650 Group, was quoted in the announcement saying, "Memory remains one of the biggest challenges for AI clusters and clouds. These systems need as much memory as they can get as fast as they can."

The company positions this development as part of its strategy to address semiconductor advancement challenges in what it describes as a "post-Moore’s Law world," where traditional transistor scaling faces increasing costs and technical hurdles. With a beta of 1.76 indicating higher market volatility than average, investors seeking deeper insights into Marvell’s financial health and growth prospects can access additional ProTips and advanced metrics through InvestingPro’s extensive analysis tools.

Marvell’s custom SRAM technology combines the company’s circuitry and software with core SRAM and 2nm process technology to achieve its performance metrics, according to the press release statement.

In other recent news, Marvell Technology has reported significant developments across various fronts. The company unveiled its custom Ultra Accelerator Link (UALink) scale-up solution, aimed at enhancing interconnect capabilities for AI infrastructure. This new offering is part of Marvell’s strategy to address scaling challenges in AI systems by enabling low-latency communication between accelerators. Meanwhile, Marvell’s recent earnings report showed a remarkable year-over-year revenue increase of 63%, with the Data Center business experiencing a 76% surge. Analysts have responded to these results with mixed reactions. Piper Sandler raised Marvell’s stock price target to $95, maintaining an Overweight rating, citing the company’s progress in its custom AI silicon program. UBS also reaffirmed a Buy rating with a $100 price target, expecting revenue growth from Amazon next year. However, Benchmark maintained its Buy rating and $95 target despite a less enthusiastic market reaction to Marvell’s financial results compared to Nvidia. TD Cowen also increased its price target to $70, highlighting Marvell’s collaboration with Amazon on 3-nanometer technology. These developments underscore Marvell’s strategic focus on AI and custom silicon solutions.

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