Marvell Technology (NASDAQ:MRVL) shares trade nearly 5% higher in pre-open Wednesday after Taiwan-based media outlet Liberty Times reported the chipmaker won Amazon’s (NASDAQ:AMZN) second-gen ASIC chip design.
The production will begin in the second half of 2023, according to the report.
Speaking on the latest earnings call in late May, the company’s CEO and President discussed a “lot of great progress on share gains, content gains as things like multi-gig ramped up, we added things like new custom ASICs.”
“So, that business has sort of outperformed,” he said.
Marvell said it hopes to “at least” double AI sales this year.
Commenting on the report, Mizuho analysts believe that “any AMZN design that is slated to start or ramp in 2H23 was already in that revenue guide.”
“Some had speculated MSFT would be a leading MRVL ASIC customer. AMZN would make sense as they have some of the biggest custom in-house silicon development (Gravitron). And NVDA CEO has oddly NEVER INCLUDED AMZN as a direct GPU / AI partner in recent presentations, only MSFT, ORCL, GOOG,” they added.