Marvell unveils custom UALink scale-up solution for AI infrastructure

SANTA CLARA - Marvell Technology, Inc. (NASDAQ: MRVL), a prominent player in the Semiconductors industry with a market capitalization of $59.35 billion, announced today its custom Ultra Accelerator Link (UALink) scale-up offering designed to enhance interconnect capabilities between AI accelerators and switches. According to InvestingPro analysis, the company is currently trading near its Fair Value, with analysts projecting 43% revenue growth for the upcoming fiscal year.

The new solution, part of Marvell’s IP portfolio for custom AI compute platforms, features 224G SerDes and UALink Physical Layer IP, configurable UALink Controller IP, scalable low-latency Switch Core and Fabric IP, and advanced packaging options. This development comes as InvestingPro data shows 15 analysts have recently revised their earnings expectations upward for the company, reflecting growing confidence in Marvell’s AI-focused strategy.

According to the company, the custom UALink solution enables scale-up interconnects for hundreds or thousands of AI accelerators in a single deployment. When combined with Marvell’s custom silicon capabilities, compute vendors can build custom accelerators with UALink controllers and custom switches.

"This addition to our custom portfolio enables customers with flexibility to optimize their AI infrastructure with standards-based scale-up switch and interconnect technology," said Nick Kucharewski, senior vice president and general manager of Marvell’s Cloud Platform Business Unit.

AMD executive Forrest Norrod expressed support for the development, stating, "We are excited to see UALink custom solutions from Marvell, which are essential to the future of AI."

Marvell is a member of the UALink Consortium, an industry group focused on developing UALink specifications to enable interoperability and communication between accelerators and related devices.

The announcement comes as hyperscalers face increasing challenges in scaling AI infrastructure while maintaining performance. Marvell states its custom UALink offering addresses these challenges through an open-standards based approach that enables direct, low-latency communication between accelerators.

This information is based on a press release statement from Marvell Technology. For deeper insights into Marvell’s financial health, growth prospects, and detailed AI sector analysis, access the comprehensive Pro Research Report, available exclusively on InvestingPro, along with 13 additional key insights about the company’s performance and outlook.

In other recent news, Marvell Technology Group Ltd. reported a year-over-year revenue increase of 63%, with its Data Center business experiencing a 76% surge. Despite these strong figures, the company’s modest guidance and lack of specific details regarding its quarterly AI results led to a lukewarm market reaction. UBS maintained a $100 price target, emphasizing future revenue growth from Amazon, though projections for Microsoft remain uncertain. Analysts at TD Cowen raised their price target to $70, citing Marvell’s engagement with Amazon on 3nm technology as a positive sign, while Piper Sandler increased their target to $95, highlighting the company’s progress in custom AI silicon. Conversely, Needham adjusted their price target to $85, citing tariff uncertainties and a more cautious outlook in their financial models. Piper Sandler’s analysis pointed to Marvell’s focus on AI and successful strategy execution as key drivers for future growth. Meanwhile, Benchmark reiterated a Buy rating with a $95 target, noting Marvell’s alignment with broader industry trends in AI and data center growth. These developments reflect varied analyst perspectives on Marvell’s strategic moves and market positioning.

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