Marvell Showcases Next-Gen 3nm Technology, Doubling Data Speeds for AI Systems

Benzinga · 10/15 18:05

Marvell Technology, Inc (NASDAQ:MRVL) showcased its cutting-edge 3nm PCIe Gen 7 connectivity at the OCP Global Summit, held from October 15 to 17 at the San Jose Convention Center.

The new PCIe Gen 7 doubles data transfer speeds compared to previous generations, enabling more efficient scaling of compute fabrics inside AI-driven server platforms, CXL systems, and general-purpose servers.

By building on its widely adopted PAM4 technology and utilizing its accelerated infrastructure silicon platform, Marvell has created a comprehensive interconnect portfolio that addresses high-bandwidth optical and copper connections in AI data centers.

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The introduction of PCIe Gen 7—building on the PCIe Gen 6 timer announcement—expands Marvell's optical and copper interconnect portfolio beyond Ethernet into PCIe, CXL, and proprietary compute fabric links, facilitating high-performance AI clusters and next-generation server systems.

With 3nm fabrication technology, Marvell's PCIe Gen 7 SerDes offers lower power consumption while maintaining performance, making it a key player in powering next-generation AI superclusters and hyperscale data centers.

Also this week, Marvell disclosed that it is developing a custom 5nm network controller FBNIC in partnership with Meta Platforms Inc (NASDAQ:META), which will boost data center performance.

However, KeyBanc analyst John Vinh recently flagged Marvell's vulnerability to market share loss from the next-generation Amazon.Com Inc (NASDAQ:AMZN) AWS Trainium 3 loss to Alchip, Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) Google's second-generation Axion ARM CPU, and Nvidia Corp's (NASDAQ:NVDA) development of its 1.6T optical DSP based on his findings from Asia.

Marvell stock surged 50% in the last 12 months. Investors can gain exposure to the stock through iShares Semiconductor ETF (NASDAQ:SOXX) and VanEck Semiconductor ETF (NASDAQ:SMH).

Marvell Stock Prediction For 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Marvell Tech's revenue has grown at an average rate of 19.71% annually over the past 5 years. The average 1-year price target from analysts is $95.57, representing an expected 19.75% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Marvell Tech have seen an annualized return of 6.23%, underperforming the S&P500 index by 3.2%. This compares to 26.74% growth in the overall Information Technology sector. Marvell Tech has a beta of 1.16.

Price Action: MRVL stock is up 2.45% at $75.98 at the last check Tuesday.

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