Marvell Sees 'Rebound Benefit' from Crack in Nvidia's (NVDA) Product Launch Roadmap... Will the AI Throne Change?

▲ Marvell (MRVL), Nvidia (NVDA), Artificial Intelligence (AI)/AI Generated Image

Marvell Technology (MRVL) stock surged 4.37% in pre-market trading following observations that Nvidia's (NVIDIA, NVDA) next-generation AI hardware launch could be delayed by more than 12 months, pushing it to 2028. This analysis suggests that a crack has been detected in the roadmap of Nvidia, considered the absolute leader in AI infrastructure competition, opening a window for competitors to enter.

According to financial media outlet Benzinga on July 6 (local time), research firm SemiAnalysis stated that Nvidia's Kyber NVL144 architecture is experiencing significant production issues. It was reported that the setback emerged just three months after Nvidia CEO Jensen Huang personally unveiled it at GTC, and the launch could be delayed by more than 12 months, pushing it to 2028.

The core issues causing the delay are the manufacturing difficulty of PCB mid-planes and co-packaged optics (CPO) technology. Nvidia is also reportedly canceling the NVL72x2 back-to-back rack architecture, which it had pursued as an alternative. SemiAnalysis explained that cloud service providers and hyperscalers strongly objected to the unique design and heavy operational burden.

This roadmap setback could buy time for competitors to penetrate the market, according to analysis. Nvidia now lacks a proven solution to scale its next-generation Rubin Ultra chip, and SemiAnalysis stated, "There's an opening for AMD MI500X or TPUv8i Broadfly to gain an advantage in the scaling competition over Rubin Ultra." The Rubin Ultra, which was to use four compute dies, is also reportedly canceled.

As interest in alternative AI infrastructure suppliers grows, Marvell has emerged as a beneficiary. CNBC host Jim Cramer recently emphasized Marvell's role in AI infrastructure, pointing out that Huang had previously predicted Marvell's enterprise value could reach $1 trillion. Marvell has also attracted market attention as investment funds shifted towards optical networking companies.

Marvell's stock price was analyzed to be 9.1% lower than its 20-day simple moving average of $282.05 but 14.6% higher than its 50-day simple moving average of $223.63. It was 59.9% higher than its 100-day simple moving average of $160.28 and 109% higher than its 200-day simple moving average of $122.63, while the Relative Strength Index (RSI) indicated a neutral trend at 46.4. On the day Nvidia's AI hardware roadmap issues emerged, Marvell's stock rose 4.37% in pre-market trading.

[Article Key Summary]

-Analysis suggests that Nvidia's Kyber NVL144 could be delayed by more than 12 months due to production issues, pushing its launch to 2028.

-SemiAnalysis believes Nvidia's roadmap setback could open competitive opportunities for AMD MI500X and TPUv8i Broadfly.

-Marvell's stock price rose 4.37% in pre-market trading amid news of Nvidia's AI hardware delays.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*