Marvell Shares Surge on Amazon’s Trainium Chip Sale Plans
Marvell Technology (NASDAQ:MRVL) closed Thursday at $310.58, up 7.27% from the prior close, after Bloomberg reported that Amazon is in active discussions to sell its custom‑designed Trainium AI chips to external customers for use in third‑party data centers. The stock’s trading volume reached roughly 188 million shares, more than five times its three‑month daily average of about 36 million shares.
Amazon’s AI chief, Peter DeSantis, confirmed to Bloomberg that the company is engaged with potential buyers, though he did not disclose identities. An AWS spokesperson, Doron Aronson, reiterated the possibility of selling “racks of them to third parties in the future.” In his April shareholder letter, Amazon CEO Andy Jassy projected that if the chips business operated as a standalone entity and sold chips produced this year to AWS and other third parties, the annual run‑rate could be approximately $50 billion, underscoring the scale of the opportunity.
Marvell, as the lead design and manufacturing partner for AWS’s Trainium chips, stands to benefit directly from any broadened external sales. The market reaction also lifted Amazon’s own shares, which closed up 2.89% at $244.37, as investors reassessed the revenue potential of the chip division. Nvidia (NASDAQ:NVDA) rose 2.86% to $210.51, reflecting market perception that Amazon’s move expands overall AI infrastructure demand rather than posing a direct competitive threat. Nvidia’s recent $2 billion investment in Marvell and Marvell’s recent inclusion in the S&P 500 further reinforce the bullish sentiment.
Analysts will look for more detail on Marvell’s custom‑chip revenue trajectory when the company reports its Q2 results in August, with particular focus on any design wins or supply agreements linked to the Trainium platform.