Technology

Nvidia Just Piled $2 Billion Into This Chip Stock, and It Can Still Climb Higher From Here

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Nvidia Just Piled $2 Billion Into This Chip Stock, and It Can Still Climb Higher From Here

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Nvidia has invested $2 billion in Marvell Technologies, a chipmaker that designs custom AI accelerators for Microsoft and Amazon. The investment creates a partnership to ensure interoperability between Marvell's XPUs and Nvidia's GPUs.

Nvidia, the world's largest chipmaker, has invested $2 billion in Marvell Technologies, another chipmaker. Marvell designs custom AI accelerators for Microsoft and Amazon. The investment indicates Nvidia's recognition that custom XPUs could displace GPUs in some uses. Nvidia and Marvell will work together to ensure their products are compatible, allowing customers to easily switch between XPUs and GPUs. Marvell is also a leader in optical interconnect, which is crucial for fast data transmission in data centers. The company expects its interconnect-related revenue to grow 50% this year.

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