RBC Maintains $105 Target as Marvell Eyes AWS Trainium Chip Partnerships
Marvell Technology's shares have fallen 27% over the past year and 8.3% year-to-date after completing its Celestial AI acquisition, while RBC Capital maintains an Outperform rating with a $105 target citing potential AWS Trainium chip partnerships. Jim Cramer highlighted Marvell’s role as a Trainium partner, urging investors to buy.
1. Share Performance and Analyst Ratings
Marvell shares have declined 27% over the past year and 8.3% year-to-date following the completion of its Celestial AI acquisition. Benchmark maintained a Hold rating on the stock, while RBC Capital reiterated an Outperform rating with a $105 price target, citing anticipated synergies from Celestial’s AI hardware in cloud infrastructure.
2. Celestial AI Acquisition
Marvell completed its acquisition of Celestial AI in early February, adding high-performance AI chiplets designed for training workloads. The deal expands Marvell’s portfolio into specialized AI silicon, positioning the company to compete in fast-growing datacenter and edge AI markets.
3. AWS Trainium Partnership
RBC Capital highlighted that Celestial’s AI chiplets could be integrated into Amazon Web Services’ Trainium AI training chips, potentially securing Marvell a stake in Amazon’s multi-billion-dollar cloud AI hardware spending. This collaboration could unlock new revenue streams and deepen Marvell’s relationship with a leading cloud provider.
4. Jim Cramer’s Commentary
Jim Cramer emphasized Marvell’s strategic partnership on Trainium chips and praised CEO Matt Murphy’s execution. He noted the stock’s modest gains despite its AI positioning and urged investors to buy shares, calling Marvell an undervalued play in the AI semiconductor space.