--- title: "NVIDIA and AMD have consecutively made purchases, and investment banks have raised their target prices! AI chips + optical interconnect leader Mellanox Technologies' financial report may trigger another round of AI frenzy" type: "News" locale: "en" url: "https://longbridge.com/en/news/287371110.md" description: "Investment bank Stifel raised the target price for Marvell Technology from $140 to $210, maintaining a \"Buy\" rating. The company is expected to exceed expectations in its earnings report to be released on May 27, with revenue potentially reaching $2.4 billion, primarily driven by the data center business and optical interconnect technology. Analysts believe that the resonance of AI ASIC and optical technology will drive the stock price up, with Marvell's stock price having risen 130% so far this year" datetime: "2026-05-22T13:40:04.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287371110.md) - [en](https://longbridge.com/en/news/287371110.md) - [zh-HK](https://longbridge.com/zh-HK/news/287371110.md) --- # NVIDIA and AMD have consecutively made purchases, and investment banks have raised their target prices! AI chips + optical interconnect leader Mellanox Technologies' financial report may trigger another round of AI frenzy According to Zhitong Finance APP, Wall Street investment bank Stifel has significantly raised its target price for Marvell Technology (MRVL.US), which focuses on customized AI chips (i.e., AI ASIC) for large AI data centers and optical interconnect technology, and is one of the largest partners of Amazon AWS Trainium series AI ASIC. They expect the company to exceed expectations when it releases its financial report on May 27 and to raise its earnings guidance. Analyst Tor Swanberg stated, "We expect Marvell Technology's performance to surpass our revenue estimate of $2.4 billion for the April quarter (an 8.2% quarter-over-quarter growth), with growth likely driven again by the data center business (which accounted for 74% of January quarter revenue), primarily supported by optical interconnect technology and the continued ramp-up of the company's core XPU projects." "We believe that with the acceleration of 1.6T optical communication deployment, mass production of Amazon AWS Trainium 3, and broader momentum in XPU support, Marvell Technology may raise its revenue guidance for the July quarter (forecast for the second quarter of fiscal year 2027) above our current estimate of approximately $2.59 billion (an 8% quarter-over-quarter growth)." **Swanberg maintains a "Buy" rating on Marvell Technology and raises its target price from $140 to $210.** **The core engine driving this round of stock price repricing/fundamental reassessment for Marvell Technology is the resonance of the two hard-core logic pillars of "AI ASIC/XPU + optical technology," rather than being driven by a single chip demand theme. Since the beginning of this year, Marvell's stock price has surged by as much as 130%.** The general consensus among analysts expects Marvell Technology's upcoming first-quarter earnings per share to reach $0.79, with revenue reaching $2.4 billion. AI ASIC is undoubtedly the first core pillar for the upward shift in Marvell Technology's valuation and fundamental growth. The strong financial reports released by Broadcom and Marvell in recent years are sufficient to demonstrate that the unprecedented strong growth logic of AI ASIC is being rapidly confirmed by "earnings report-level evidence." The global wave of generative AI has accelerated the AI chip development process among cloud computing and chip giants, who are competing to design the fastest and most energy-efficient AI computing infrastructure clusters for advanced large AI data centers. Optical interconnect is the second core pillar for Wall Street analysts' bullish outlook on Marvell Technology's stock price and fundamental expansion logic, and it is also a significant factor in NVIDIA's $2 billion investment in the company. When the connection distance exceeds approximately 10 meters, copper cable interconnects can no longer meet the bandwidth and distance requirements needed for large AI data centers; at this point, it is necessary to switch to optical interconnect systems, and the core hardware in optical devices is a series of optical DSPs and optical interconnect products that Marvell excels at. Optical interconnect focuses on high-speed links between servers, switches, racks, and data centers. Looking further ahead, Marvell's leading silicon photonics technology is also a core logic for Wall Street's optimism about the company's stock price. Silicon photonics is not a parallel alternative concept to optical interconnect but rather a key technological realization that pushes light from outside the cabinet, between racks, further into the rack, within the system, and even inside the package More precisely, silicon photonics technology is more inclined to advance optical transmission towards the chip/packaging/I/O side, which is also why Marvell chose to acquire Celestial at a high price. ## AMD and NVIDIA Sequentially Invest **AMD Discloses Holdings, Sparking "Merger Speculation"** On May 12, AMD disclosed its holdings in Marvell in a regulatory filing, attracting strong market attention. On May 13, Marvell Technology's stock price surged 8.18%, closing at $177.95, a new historical closing high. The market immediately associated this with potential strategic acquisition intentions—AMD has a strong presence in both data center CPUs and GPUs, but its AI interconnect technology is relatively weak, and Marvell happens to be a leading company in this field. Although neither party has commented on the acquisition matter so far, AMD's holdings themselves send a signal to the market: this chip giant with a market value of about $400 billion is closely monitoring Marvell's strategic value. **NVIDIA's $2 Billion Strategic Investment and NVLink Fusion** On March 31, NVIDIA and Marvell announced a strategic cooperation agreement, with NVIDIA incorporating Marvell into its AI factory and AI-RAN ecosystem through the NVLink Fusion platform, investing $2 billion in a strategic stake. For Marvell, the significance of this deal goes far beyond the funds themselves. Firstly, the integration at the technical level places Marvell Technology at the intersection of the GPU and ASIC ecosystems. NVLink Fusion allows customers to flexibly introduce Marvell's custom chips and network products based on NVIDIA's architecture, building heterogeneous AI infrastructure. Secondly, the $2 billion strategic investment is NVIDIA's highest level of recognition of Marvell's technological position. RBC Capital analyst Pajjuri commented that this is a "strong validation of Marvell's dominant position in the optical interconnect field." From a strategic perspective, NVIDIA's layout carries a deeper defensive logic—its "spending $6 billion within 30 days to complete the strategic encirclement of optical interconnect." In the context of increasingly fierce competition for AI computing power, NVIDIA is locking in this strategic infrastructure through capital ties to ensure its GPU empire is not isolated ### Related Stocks - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [AMD.US](https://longbridge.com/en/quote/AMD.US.md) - [AMDL.US](https://longbridge.com/en/quote/AMDL.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [AMUU.US](https://longbridge.com/en/quote/AMUU.US.md) - [MRVL.US](https://longbridge.com/en/quote/MRVL.US.md) - [SF.US](https://longbridge.com/en/quote/SF.US.md) - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [RY.US](https://longbridge.com/en/quote/RY.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [SF-C.US](https://longbridge.com/en/quote/SF-C.US.md) - [SFB.US](https://longbridge.com/en/quote/SFB.US.md) - [SF-B.US](https://longbridge.com/en/quote/SF-B.US.md) - [SF-D.US](https://longbridge.com/en/quote/SF-D.US.md) ## Related News & Research - [BofA Picks Its 'Top 2 AI Chip Stocks' for the Agentic AI Boom](https://longbridge.com/en/news/287189301.md) - [AMD set to benefit from agentic AI CPU demand surge](https://longbridge.com/en/news/286655054.md) - [AMD commits $10B to Taiwan's semiconductor chip packaging, manufacturing ecosystem](https://longbridge.com/en/news/287235572.md) - [AXT Turned the AI Data Center Boom Into an 8,436% 1-Year Return](https://longbridge.com/en/news/286650839.md) - [Nvidia Q1 results surpass Wall Street expectations thanks to massive AI chip demand](https://longbridge.com/en/news/287136333.md)