Marvell Technology (NASDAQ: MRVL) shares rose Thursday, fueled by investor optimism around artificial intelligence infrastructure and the company’s recent strategic moves.
The stock gained momentum on Wednesday after Marvell’s board approved a new $5 billion share repurchase authorization and an accelerated buyback program, signaling management confidence in the company’s long-term outlook.
On Thursday, Marvell announced it will showcase its next-generation interconnect portfolio at the European Conference on Optical Communication (ECOC) in Copenhagen from September 28 to October 2, 2025.
Also Read: Marvell Stock Trails As Broadcom Soars On AI Chip Demand And $10B OpenAI Deal
The portfolio is engineered to support both scale-up and scale-out AI deployments in data centers.
The rise of generative AI and large-scale models is reshaping data center architectures, creating unprecedented demand for high performance, bandwidth, and energy efficiency.
Hyperscalers building massive AI clusters across racks, campuses, and global sites increasingly depend on advanced silicon, memory systems, and integrated optical connectivity to meet these demands.
Marvell is tackling these challenges with a full-stack approach combining advanced silicon platforms, chiplet-based designs, and co-packaged optical technologies.
The strategy aims to enhance performance across AI fabrics while reducing latency, lowering power consumption, and enabling faster cloud-scale deployments.
Wall Street’s Verdict On Buyback
Wall Street’s reaction to the buyback announcement was mixed. Analysts weighed the company’s AI growth prospects, customer momentum, and long-term revenue outlook.
Bank of America’s Vivek Arya cited underperformance in AI growth versus peers, flat Amazon.com (NASDAQ: AMZN) business, and limited traction from a new Microsoft (NASDAQ: MSFT) project. Still, he said the CEO’s confidence and buyback activity boost optimism for 2026–2027.
JPMorgan’s Harlan Sur noted management expects broad-based growth across AI, data centers, and cyclical markets in 2026. He highlighted AI custom Application-Specific Integrated Circuit (ASIC) revenue growth of 18%–20%, strong momentum in optical networking, and accelerating revenue trends into 2027 and 2028.
Price Actions: MRVL stock was trading higher by 5.11% to $84.18 at last check Thursday.
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