Shares of Marvell (MRVL) rose significantly on March 31 after Nvidia (NVDA) announced a massive $2 billion strategic investment in the custom chip specialist.
This landmark agreement will accelerate AI infrastructure through the NVLink Fusion platform, allowing customers to integrate MRVL’s custom computing and networking solution directly into Nvidia’s world-class AI ecosystem.
Following today’s rally, Marvell shares are up more than 35% from their year-to-date low in early February.
A $2 billion backing from the AI darling validates Marvell’s pivotal role. By joining the NVLink Fusion ecosystem, MRVL can now offer a “heterogeneous” AI infrastructure, essentially allowing large tech companies to seamlessly combine their custom XPUs and networking silicon with NVDA GPUs.
This partnership solves a major bottleneck for hyperscalers who need specialized chips but also don’t want to lose the performance of Nvidia software.
For MRVL stock, this deal provides a highly visible revenue bridge, tying the company’s growth directly to the insatiable global demand for AI clusters powered by Nvidia.
Beyond the headline-grabbing NVDA announcement, Marvell’s fundamentals also justify owning this AI stock.
In early March, it posted a record $8.195 billion in revenue for fiscal 2026 (up 42% year-over-year), reinforcing its leadership in optical DSPs and connectivity – the conduits that allow AI chips to communicate with each other.
At roughly 32 times forward earnings, Marvell stock is quite inexpensive to own in 2026, especially given the company’s expansion into AI-RAN for 5G/6G networks.
In short, MRVL is positioned to benefit as the global telecommunications infrastructure undergoes an AI-driven overhaul.
On Tuesday, Marvell surpassed its 20-day moving average (MA), a technical breakout that often indicates continued bullish momentum ahead.
Wall Street analysts also remain bullish on Marvell Technology. Its Relative Strength Index (14-day) currently sits at around 61, significantly below oversold territory.
The consensus rating on MRVL stock remains at “Strong Buy,” and the average price target of around $120 indicates a potential upside of another 20% from here.