Marvell Showcases Next-Gen 3nm Technology, Doubling Data Speeds for AI Systems

Marvell Technology, Inc MRVL showcased its cutting-edge 3nm PCIe Gen 7 connectivity at the OCP Global Summit, held from October 15 to 17 at the San Jose Convention Center.

The new PCIe Gen 7 doubles data transfer speeds compared to previous generations, enabling more efficient scaling of compute fabrics inside AI-driven server platforms, CXL systems, and general-purpose servers.

By building on its widely adopted PAM4 technology and utilizing its accelerated infrastructure silicon platform, Marvell has created a comprehensive interconnect portfolio that addresses high-bandwidth optical and copper connections in AI data centers.

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The introduction of PCIe Gen 7—building on the PCIe Gen 6 timer announcement—expands Marvell's optical and copper interconnect portfolio beyond Ethernet into PCIe, CXL, and proprietary compute fabric links, facilitating high-performance AI clusters and next-generation server systems.

With 3nm fabrication technology, Marvell's PCIe Gen 7 SerDes offers lower power consumption while maintaining performance, making it a key player in powering next-generation AI superclusters and hyperscale data centers.

Also this week, Marvell disclosed that it is developing a custom 5nm network controller FBNIC in partnership with Meta Platforms Inc META, which will boost data center performance.

However, KeyBanc analyst John Vinh recently flagged Marvell's vulnerability to market share loss from the next-generation Amazon.Com Inc AMZN AWS Trainium 3 loss to Alchip, Alphabet Inc GOOG GOOGL Google's second-generation Axion ARM CPU, and Nvidia Corp's NVDA development of its 1.6T optical DSP based on his findings from Asia.

Marvell stock surged 50% in the last 12 months. Investors can gain exposure to the stock through iShares Semiconductor ETF SOXX and VanEck Semiconductor ETF SMH.

Marvell Stock Prediction For 2024

When buying a stock for a longer time horizon, it is important for investors to assess where they think the stock is headed in the future.

When mapping a stock's future trajectory, investors should consider factors including the future earnings expectations and expected performance against a benchmark.

Marvell Tech's revenue has grown at an average rate of 19.71% annually over the past 5 years. The average 1-year price target from analysts is $95.57, representing an expected 19.75% upside in 2025.

While past performance is not a guarantee of future results, investors should also look at a stock's historical performance when compared to both a benchmark index and the company's peers. Shares of Marvell Tech have seen an annualized return of 6.23%, underperforming the S&P500 index by 3.2%. This compares to 26.74% growth in the overall Information Technology sector. Marvell Tech has a beta of 1.16.

Price Action: MRVL stock is up 2.45% at $75.98 at the last check Tuesday.

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