The Future of AI: What to Expect from Marvell Technology’s Event
Key Takeaways
- Marvell Technology will hold its artificial intelligence (AI) event Accelerated Infrastructure for the AI Era on Thursday.
- Bank of America analysts expect Marvell could provide insight into its AI optics market leadership at the event.
- J.P. Morgan analyst also indicated that Marvell could offer details about its custom AI chip customers which could include hyperscalers.
Marvell Technology (MRVL) is gearing up to host its artificial intelligence (AI) event, Accelerated Infrastructure for the AI Era, on Thursday. Analysts are eagerly anticipating the insights that Marvell will provide regarding its custom AI chip customers and its leadership in the AI optics market. This event presents a significant opportunity for Marvell to showcase its unique offerings and position itself as a key player in the rapidly growing AI industry.
Custom AI Chip Market Growth
At the upcoming event, Marvell is expected to highlight its strengths in custom chips compared to lower-priced competitors from Taiwan, according to analysts at Bank of America. The analysts project that the general accelerator market could double year-over-year, reaching $90 billion by the end of 2024 and doubling again by the end of 2027.
While Broadcom (AVGO) currently dominates the custom chip market, accounting for approximately 75% of the market share in 2024, Bank of America predicts that Marvell will gain relevance and capture over 10% of the custom AI chip market by 2027.
Possible Update on Custom AI Chip Customers Including Hyperscalers
Analysts at J.P. Morgan suggest that Marvell may provide updates on its expanding custom AI chip pipeline and its enterprise customers who are integrating this technology. It is believed that tech giants like Amazon (AMZN) and Google (GOOGL) are already leveraging Marvell’s silicon technology, particularly in their hyperscale operations.
By disclosing details about the customers utilizing Marvell’s infrastructure, the company could generate increased investor interest and enthusiasm for its stock.
Leading Position in AI Optics Could Expand
Marvell’s event is expected to highlight the company’s dominant position in the AI optics market. Bank of America analysts note that Marvell currently holds over 60% market share in critical optical components such as digital signal processors, amplifiers, and laser drivers, which collectively account for approximately 50% of the bill of materials.
Despite its strong foothold in the optics industry, Marvell is also making strides towards silicon photonic integration, positioning itself for further growth and innovation. Analysts forecast a compound annual growth rate (CAGR) of over 30% for Marvell’s AI optics business in the coming years, starting from a base of around $0.9-$1 billion by 2024.
As of noon ET on Wednesday, Marvell shares were trading down nearly 3% at $71.18. However, the stock has shown significant gains of approximately 22% since the beginning of the year and over 76% in the past 12 months.
In conclusion, Marvell Technology’s upcoming AI event is poised to shed light on the company’s advancements in custom AI chips, its expanding customer base, and its leading position in the AI optics market. Investors and industry observers are eagerly awaiting the insights and updates that Marvell will unveil during this highly anticipated event.
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