Microsoft selects Marvell’s LiquidSecurity HSMs for Azure Cloud HSM

SANTA CLARA, Calif. - Marvell Technology, Inc. (NASDAQ:MRVL), a prominent player in the Semiconductors industry with a market capitalization of $65.7 billion, announced Monday that Microsoft has chosen its LiquidSecurity hardware security modules (HSMs) to power Microsoft Azure Cloud HSM service. According to InvestingPro data, Marvell is positioned for significant growth, with analysts projecting a 43% revenue increase for the current fiscal year.

The collaboration expands the existing relationship between the companies, as Marvell’s HSMs already support Microsoft Azure Key Vault and Azure Key Vault Managed HSM services. InvestingPro analysis reveals 16 analysts have recently revised their earnings expectations upward for the upcoming period, suggesting growing confidence in this partnership’s potential impact. InvestingPro subscribers have access to 13 additional key insights about Marvell’s business outlook.

Azure Cloud HSM is a highly available, single-tenant service that allows customers to manage cryptographic keys and perform operations within their own dedicated, cloud-based HSM cluster. The service is FIPS 140-3 Level 3 certified and provides secure access over a private link from customers’ virtual networks.

Will Chu, senior vice president at Marvell, said, "Together, we share a vision to modernize the HSM market and enable Azure customers to leverage the latest security standards for the most demanding, cloud-scale applications."

According to Soumya Subramanian, vice president of Cloud Security Engineering at Microsoft, the service addresses customer needs for HSM control without the overhead of managing high availability clusters independently.

Marvell’s LiquidSecurity HSMs are PCIe-based devices designed for multi-tenant cloud environments. A single LiquidSecurity card can manage 100,000 pairs of encryption keys and process more than one million operations per second, allowing cloud providers to deliver HSM services while using less power and space than traditional HSMs.

The HSM-as-a-service market revenue is expected to grow at 8.5% annually through 2029, according to information cited in the company’s press release statement. This growth potential aligns with Marvell’s current trajectory, as InvestingPro data shows the company has maintained a robust 16% revenue CAGR over the past five years. For detailed analysis of Marvell’s market position and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

HSMs perform authentication and encryption processes for securing data, Public Key Infrastructure, sign-in services and other transactions that have traditionally required dedicated server appliances managed within users’ data centers.

In other recent news, Marvell Technology, Inc. has completed the sale of its Automotive Ethernet business to Infineon Technologies AG for $2.5 billion in an all-cash transaction. This transaction, finalized eleven days into Marvell’s third fiscal quarter of 2026, means the company will no longer report revenue from this unit, which had contributed mid-single-digit millions of dollars during that period. Additionally, Marvell has partnered with South Korean AI semiconductor company Rebellions Inc. to develop custom AI infrastructure targeting initiatives across Asia-Pacific and the Middle East. This collaboration aims to create high-performance, energy-efficient AI systems using Marvell’s custom platforms.

In terms of leadership changes, Marvell has appointed Rajiv Ramaswami, CEO of Nutanix, to its Board of Directors. Ramaswami brings over 30 years of experience in the technology sector, having held senior positions at companies like VMware and Cisco. On the financial front, Morgan Stanley has raised its price target for Marvell to $80, maintaining an Equalweight rating, while Stifel has reiterated its Buy rating with the same price target. Both firms express confidence in Marvell’s future growth prospects, with Morgan Stanley adjusting its 2026 earnings multiple and Stifel highlighting a 7.6x CY26E EV/Sales multiple.

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