Nvidia Invests $2B in Marvell, Stock Surges to $108.86
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- Nvidia announced a $2 billion investment in Marvell Technology on March 31 to deepen AI collaboration between the two companies.
- Marvell shares rose to $108.86 in midday trading, up from a March 30 low of $87.82.
- Marvell raised its revenue guidance in its March 5 earnings, projecting FY 2028 revenue near $15 billion (analysts forecast $14.78 billion).
- Barchart projected Marvell’s free‑cash‑flow at $2.57 billion for the next 12 months, implying a $167.53 per‑share price target and a $146 billion valuation at a 1.76% yield.
- Barchart reported an unusual surge in MRVL put options, with over 2,900 contracts at the $110 strike expiring May 15—about 25 times the prior volume.
- Yahoo! Finance’s analyst survey lifted its price target for Marvell to $121.25, up from $120.28.
Why it matters: Shareholders benefit from Marvell’s rally and upgraded revenue outlook, while short‑put sellers can lock in an 8% yield if the stock stays above $110, and the $2 billion Nvidia cash infusion bolsters Marvell’s AI positioning, reshaping valuation expectations. Investors who own the stock gain from the price climb, whereas those betting on the puts risk loss if the price breaks $110.
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