Marvell Shares Jump 40% After Nvidia CEO Endorsement, Amazon Targets AI Chip Market
NVDA•Amazon is in talks to sell its Trainium AI chips to external data centers, challenging Nvidia’s dominance in AI infrastructure without impacting AWS revenue. Nvidia CEO Jensen Huang’s endorsement of Marvell Technology drove its shares up over 40% since early June, highlighting AI networking demand and valuation gaps.
1. Amazon Explores External Trainium Chip Sales
Amazon has begun discussions to sell its Trainium AI chips to third-party data centers worldwide, aiming to capture international customers seeking localized AI infrastructure. Company executives emphasize that external hardware sales will not cannibalize AWS revenue and view this as a way to broaden AI infrastructure reach.
2. Marvell’s Stock Soars After Nvidia Endorsement
Nvidia CEO Jensen Huang publicly endorsed Marvell Technology as a potential trillion-dollar AI player, triggering a more than 40% surge in its share price since early June. While Marvell benefits from rising demand for AI networking and custom chips, its forward valuation of 76x earnings contrasts with Nvidia’s 24x multiple, raising questions about sustainability.
3. Trump Highlights Nvidia in Domestic Chip Strategy
U.S. President Donald Trump used social media to champion Nvidia’s chipmaking ambitions alongside support for Elon Musk’s Terafab project, reinforcing political backing for domestic semiconductor production. At the same time, he announced an Apple-Intel design partnership, underlining a broader push to repatriate chip manufacturing.
