Marvell's Big AI Test Comes One Day After NVIDIA's Blowout Quarter

NVIDIA’s blowout second-quarter results showed AI infrastructure demand is still accelerating, led by 117% year-over-year data center growth.

Marvell Technology’s earnings report will test whether that demand is spreading into networking, optical interconnects and custom silicon.

Marvell Technology’s Google custom-chip agreement strengthened the bull case, but the stock’s sharp rally leaves little room for guidance disappointment.

NVIDIA NASDAQ: NVDA just cleared the bar, and then some. On Wednesday, Aug. 26, the AI chip leader reported blowout results , with revenue of $96.2 billion and data center sales up 117% year over year. The company also guided current-quarter revenue to a stunning $108 billion , well above Wall Street's expectations. CEO Jensen Huang declared that AI has "reached its inflection point" and that demand is accelerating.

Now the market gets its next read. When Marvell Technology NASDAQ: MRVL reports Thursday, Aug. 27, after the close , one day after NVIDIA, it will help answer a more nuanced question: whether the AI infrastructure story is genuinely broadening beyond the GPU, into the custom silicon, networking, and interconnect layers the entire buildout depends on.

It is easy to forget that an AI data center is far more than a room full of GPUs. Those chips need to talk to one another at staggering speeds, move data across racks and between facilities, and connect to storage and the outside world. That is Marvell's territory. The company is a leader in optical interconnects, high-speed SerDes, Ethernet switching, and custom silicon that stitches AI clusters together.

Marvell has become one of the more credible AI infrastructure names outside the GPU leaders. Its data center segment has been growing rapidly as hyperscalers pour capital into their networks, and NVIDIA's accelerating demand outlook only strengthens the backdrop. That data center growth is the number investors will scrutinize most closely on Thursday.

The most compelling part of the Marvell story right now is custom silicon. Hyperscalers increasingly want their own tailor-made chips rather than relying solely on off-the-shelf GPUs, and Marvell has positioned itself as a go-to partner for designing them. That opportunity took a major step forward recently, when Marvell struck a major custom chip deal with Alphabet NASDAQ: GOOGL that included warrants tied to $120 billion in potential purchases.

The market read that agreement as a direct challenge to Broadcom NASDAQ: AVGO , long the dominant force in custom AI chips, and Broadcom shares fell more than 10% on the news. For Marvell, the deal is validation that its custom silicon ambitions are real and are scaling, and it meaningfully expands the company's potential revenue per AI rack. Any commentary from management on Thursday regarding the pipeline for future custom-chip wins will be closely watched.

Marvell stock has been on a staggering run, up 188% year-to-date , and has climbed nearly 30% over the past month. That surge has left the valuation stretched, with shares trading at a trailing price-to-earnings (P/E) near 84 and roughly 25 times sales, multiples that leave little margin for error.