Latest news with #Trainium3
Yahoo
28-05-2025
- Business
- Yahoo
This AI Stock Could See Big Gains – Why JPMorgan Is Bullish on Marvell (MRVL)
We recently published a list of . In this article, we are going to take a look at where Marvell Technology Inc. (NASDAQ:MRVL) stands against other AI stocks that are on analyst's radar today. On May 27, JPMorgan analyst Harlan Sur reiterated an 'Overweight' rating on Marvell Technology, Inc. (NASDAQ:MRVL) with a $130.00 price target. Heading into Thursday's earnings report, analyst Harlan Sur is optimistic about the company's quarterly performance. In particular, Sur anticipates a steady uptick in volume for its AI ASIC programs, robust demand for 800G products, and the initial ramp of 1.6T optical DSPs. These trends are in turn expected to drive cyclical recovery in its enterprise and carrier segments. April quarter results are projected to reach around $1.875 billion, and guidance for the July quarter is estimated to exceed $2.00 billion; both aligning with the firm's consensus estimates. One particular segment anticipated to demonstrate solid growth is the datacenter segment. Cyclical improvements and new product cycles will also positively benefit Marvell. An assembly line in a semiconductor factory, with workers at their stations. Sur also noted momentum in Marvell's custom ASIC partnerships. He highlighted Amazon's ongoing production ramp with the Trainium 2 AI XPU ASIC, the expected high-volume ramp of the Trainium 3 program in 2026, and also Marvell's Microsoft AI ASIC MAIA Gen 2 program, which is expected to ramp in the same year. The firm noted how the company's AI ASICs and networking revenues could reach $4 billion this year. Last but not least, Sur anticipates that Marvell's custom datacenter and AI ASIC pipeline, including SmartNIC/DPU ASIC chips and eSSD controller ASICs, will be key contributors to long-term growth. Overall, MRVL ranks 7th on our list of AI stocks that are on analyst's radar today. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRVL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
23-05-2025
- Business
- Yahoo
Melius Steps Back From Marvell (MRVL) – Here's Why the Buy Case Faded
We recently published a list of . In this article, we are going to take a look at where Marvell Technology, Inc. (NASDAQ:MRVL) stands against other best AI stocks on latest news and ratings. Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers. On May 22, Melius Research revised its rating for the stock from Buy to 'Hold' while maintaining the price target at $66. Moving to the sidelines, the firm mentioned in a research note how this call hasn't worked out. An assembly line in a semiconductor factory, with workers at their stations. The firm expressed concerns about Marvell's future performance, pointing out that there is a risk that shares stay range-bound or simply don't perform well as compared to the bulk of its semis and hardware coverage for the rest of 2025-26. A slower ramp of Amazon's Tranium means not much revenue upside in calendar 2025, while the case for upside in 2026-28 is blurred by Marvell's roles in AWS's Trainium 3 and 4 accelerators. Overall, MRVL ranks 6th on our list of best AI stocks on latest news and ratings. While we acknowledge the potential of MRVL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRVL and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-04-2025
- Business
- Yahoo
Amazon CEO defends billions in AI spend
This story was originally published on CIO Dive. To receive daily news and insights, subscribe to our free daily CIO Dive newsletter. Amazon plans to keep quenching AI's insatiable thirst for compute and capital in order to reap the business opportunities ahead, Amazon CEO Andy Jassy said in a Thursday letter to shareholders. "We continue to believe AI is a once-in-a-lifetime reinvention of everything we know," Jassy said in the letter. "The demand is unlike anything we've seen before and our customers, shareholders, and business will be well-served by our investing aggressively now." Citing skyrocketing demand for AWS services and the potential customer experience gains from AI deployment, Jassy said the company has invested to deliver AI fundamentals to the market. This effort includes the Amazon Nova models released in December and homegrown computing chips like Trainium2, which will help lower compute costs, Jassy said. The leading hyperscalers — AWS, Microsoft and Google Cloud — have pledged to invest billions in capital expenditures to meet AI demand, citing infrastructure buildouts as a key driver of spend. Amazon CFO Brian Olsavsky said the company plans to deploy $100 billion in capital expenditures this year alone. "Similar to 2024, the majority of the spend will be to support the growing need for technology infrastructure," said Olsavsky in February, during the Q4 2024 earnings call. "This primarily relates to AWS, including to support demand for our AI services as well as tech infrastructure to support our North America and international segments." In addition to standing up more compute capacity, Amazon has worked to deploy foundational models, expand access to specialized training and create its own line of AI-optimized chips. Amazon plans to unveil its latest chipset, Trainium3, later this year. Chips are the biggest driver of costs for AI services, according to Jassy. "Most AI to date has been built on one chip provider," Jassy said. "It's pricey. Trainium should help, as our new Trainium2 chips offer 30-40% better price-performance than the current GPU-powered compute instances generally available today." As providers increase their capital investments geared at boosting compute, governments have also laid out plans to expand domestic access to AI-ready infrastructure. In January, the U.S. unveiled a $500 billion plan to grow the national data center footprint with support from the private sector. On Wednesday, the European Union unveiled its own action plan to increase compute capacity and specialized skills in the region.
Yahoo
06-03-2025
- Business
- Yahoo
Marvell (MRVL) Crashes 18%-Here's Why AI Investors Are Pulling Back
Marvell Technology (NASDAQ:MRVL) took a big hit on Thursday, dropping 17.58% to $74.29 as of 13:33 ET, after its fourth-quarter earnings and guidance failed to impress Wall Street. The numbers were mostly in line with expectations, but in today's market, that wasn't enough. Warning! GuruFocus has detected 4 Warning Signs with MRVL. Needham's N. Quinn Bolton summed it up: Investors aren't satisfied with just meeting expectations. He kept his Buy rating but slashed his price target to $100 from $120, even as Marvell said it's on track to bring in over $2.5 billion in AI revenue in fiscal 2026. Citi's Atif Malik also cut his target, pointing out that investors may have overestimated AI-related growth for the near term. There's also some unease around Marvell's relationship with Amazon (NASDAQ:AMZN). While Marvell won the contract for Trainium 2.5 Ultra, Amazon is reportedly working on Trainium 3 in-house, which could limit Marvell's future gains. Adding to the pressure, Summit Insights Group's Kinngchai Chan downgraded the stock to Hold, saying the company doesn't have the financial flexibility to navigate AI-related challenges as smoothly as some of its competitors. Bottom line? Marvell's earnings weren't bad, but expectations for AI stocks are sky-highand right now, anything short of a home run is getting punished. This article first appeared on GuruFocus.
Yahoo
08-02-2025
- Business
- Yahoo
Amazon plans to spend an estimated $100 billion on AI in 2025
Amazon spent $26.3 billion in capital expenditures during the fourth quarter of 2024, and that is 'reasonably representative' of what it plans to spend each quarter of 2025, CEO Andy Jassy said during the company's Q4 earnings call on Thursday. The 'vast majority' of that spending will reportedly go towards Amazon Web Services and AI development. Thursday's announcement comes amid a concerted push by nearly every major player in the AI space to invest heavily in AI in the new year. Earlier in the week, Alphabet CEO Sundar Pichai told investors that Google plans to spend about $75 billion in AI capital expenditures this year while Meta will likely spend between $60 billion and $65 billion. For its part, Microsoft has committed $80 billion to AI capital expenditures in 2025. Amazon revealed in December that it is partnering with Anthropic, maker of the Claude large language model, to train the company's next generation of LLMs on its newly released Trainium2 processors. To that end, Amazon is currently constructing a data center housing hundreds of thousands of the chips. Per Jassy, the company plans to reveal the Trainium2's successor, Trainium3, later this year. 'We're all learning from one another,' Jassy said of Amazon's competition Thursday. 'You have seen and will continue to see a lot of leapfrogging between us.' These investments come as the American AI industry reels from DeepSeek's release, an AI that offers comparable performance to OpenAI's leading reasoning models for a fraction of the cost and energy requirements. While Amazon's stock has risen 40% over the past year, its value slid 4% following Thursday's earnings call. Sign in to access your portfolio
