The AI ​​chip maker is leaving Intel

Marvell Technology (MRVL, Financial) just reached a stunning milestone: The company’s stock has risen to nearly $120 – a nearly 100% year-to-date return – and its market cap is now over $105 billion. Yes, you read that right: Marvell has overtaken Intel (INTC, Financial) in market value and cemented its place as a serious player in the semiconductor world. Driving this rocket-like rise is the strong focus on AI chips and high-performance data centers, with the latter now accounting for a whopping 73% of sales. CEO Matt Murphy’s bold move into AI is paying off, and the company’s deepening partnership with Amazon – particularly work on the Trainium AI chip – sets the stage for even more growth in the coming years.

The excitement doesn’t stop there. Marvell is bringing cutting-edge technology to market, such as its new 1.6 Tbit/s optical chipset and HBM custom compute architecture, both aimed squarely at AI-powered data centers. Analysts are piling in praise: TD Cowen maintains its Buy rating and Piper Sandler just raised its price target, calling Marvell’s custom AI ASICs a game-changer. Financially, the numbers are equally impressive: 19% quarter-on-quarter revenue growth, driven by a 25% increase in data center revenue. Sure, the company’s debt is $4.1 billion, but with strong cash flows and a clear growth trajectory, that’s a blip, not a warning sign.

But let’s face it: high stakes mean high expectations. Marvell’s shares trade at a higher valuation multiple than Nvidia (NVDA, Financial), which could leave the company vulnerable if the AI ​​boom falters or major players like Amazon pause in buying. Still, the company’s relentless innovation and ability to outmaneuver industry heavyweights like Intel make it impossible to ignore. For investors betting on the long-term rise of AI, Marvell isn’t just riding the wave — it’s helping to build it.