Why Marvell Technology Rallied in March

By Billy Duberstein – Apr 4, 2026 at 1:21PM ESTKey PointsMarvell delivered a beat-and-raise quarter. It also announced a fresh $2 billion investment from Nvidia. Its networking expertise should serve it well in the age of AI inference. Shares of chipmaker Marvell Technology (MRVL +0.30%) rallied in March, rising 21.3% according to data from S&P Global Market Intelligence. Marvell had a busy month, reporting fourth-quarter earnings that beat expectations. Later in the month, the company also announced a landmark investment from and product collaboration with Nvidia (NVDA +0.87%). ExpandNASDAQ: MRVLMarvell TechnologyToday's Change(0.30%) $0.32Current Price$107.03Key Data PointsMarket Cap$94BDay's Range$101.13 - $107.2652wk Range$47.09 - $107.84Volume1MAvg Vol18MGross Margin50.10%Dividend Yield0.22% A beat, strong guidance, and a boost from Nvidia In its fiscal fourth quarter, Marvell reported a 22.1% jump in revenue to $2.2 billion, with adjusted (non-GAAP) earnings per share rising 33.3% to $0.80. Management also guided for a strong 9% sequential jump in revenue in the first quarter, with a guide for $0.79 in adjusted EPS. The reported results and guidance both handily beat analysts' expectations. On a more granular level, Marvell management said it expected data center revenue to grow 40% in fiscal 2027 (its current fiscal year), which is higher than the average analyst estimate of 25%. Over the past year, there has been some consternation about whether Marvell has lost market share with its largest customer, Amazon, for Amazon's custom Trainium chips. However, the forward guidance indicates that the all-important XPU and XPU-attach business, in which Marvell provides crucial IP for custom AI chips, is alive and well. Notably, Marvell has also diversified its customer base, adding Microsoft to its roster. Microsoft unveiled its updated XPU, the Maia2 chip, back in January. Additionally, the advent of agentic inference could support higher-than-expected growth in the networking part of AI infrastructure, where Marvell excels. Image source: Getty Images. The networking factor is likely what led to the late-month announcement that Nvidia will invest $2 billion in Marvell. The investment also includes a product partnership. Typically, these days, AI infrastructure is either Nvidia-based, or companies deploy their own custom XPU chips and Ethernet technology. However, it now appears Nvidia is looking to integrate with Marvell, in order to enable heterogeneous infrastructures that can mix XPUs with Nvidia's other technologies, such as NV-Link, its Vera CPUs, or even hybrid Nvidia GPU-plus-XPU architectures. The press release also mentioned a collaboration on silicon photonics. This is important because silicon photonics may replace copper-based networking in the next generation of AI data centers. Nvidia's current NV-link fusion is based on copper, so it appears Nvidia is seeking Marvell's networking expertise to develop new optical networking products built on Nvidia technology in the future. Over the past year, Nvidia has been making similar types of deals with other semiconductor companies that might have been considered competitors, but have instead chosen to collaborate with the chip giant. These announcements are typically met with a jump in the target company's shares, as investors appear to appreciate the vote of confidence and anticipate more future growth, offsetting concerns over dilution. Marvell should remain an AI winner Marvell had a difficult 2025, but its resilient results have shown it to be a beneficiary of the AI infrastructure build-out. It's also possible that things could get even better for Marvell in the age of agentic AI inference. In these applications, AI agents will be constantly communicating with large language models in data centers and with each other. That will require a lot of networking, which plays to Marvell's strengths. Marvell is no longer as cheap as it was at times last year, but at 27 times this year's earnings estimates, the stock is still buyable for those enthusiastic about the networking growth prospects of generative AI.Read NextApr 2, 2026 •By Harsh ChauhanThe Artificial Intelligence (AI) Sell-Off Has Gone Too Far. Here Are the Stocks I'd Buy Before the Market Figures It Out.Apr 1, 2026 •By David Jagielski, CPANvidia Is Investing in Marvell Technology Stock.

Should You Do the Same?Mar 31, 2026 •By Joe TenebrusoWhy Marvell Stock Jumped TodayMar 31, 2026 •By Howard SmithStock Market Today, March 31: Marvell Technology Surges After Nvidia Invests $2 Billion in AI PartnershipMar 27, 2026 •By John BallardMarvell's Data Center Revenue Just Grew 21%. Here's Why This Artificial Intelligence (AI) Stock Could Deliver 50% Upside in 2026.Mar 18, 2026 •By Adam Levy1 Can't-Miss Artificial Intelligence (AI) Stock to Buy With $100 Right NowAbout the AuthorBilly Duberstein is a contributing Motley Fool technology analyst covering semiconductors, hardware, software, and AI, as well as consumer goods. Billy loves looking at the story behind investments from an interdisciplinary point of view, with an equal appetite for high-growth disruptors and beaten-down value names. He is also CEO of Stone Oak Capital, a registered investment adviser in California. He previously worked as a technology analyst for several hedge funds and as a research assistant at Wedbush Securities. Billy holds an MBA in finance from New York University and a bachelor’s degree in music from the University of Virginia.TMFStoneOakStocks MentionedMarvell TechnologyNASDAQ: MRVL$107.03(+0.30%)+$0.32NvidiaNASDAQ: NVDA$177.28(+0.87%)+$1.53MicrosoftNASDAQ: MSFT$373.10(+1.01%)+$3.73AmazonNASDAQ: AMZN$209.70(-0.41%)-$0.87*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.