The stock of Marvell Technology (MRVL) is up 10% on reports that Nvidia (NVDA) is taking a $2 billion U.S. stake in the semiconductor company.
As part of the deal, Marvell will join Nvidia’s artificial intelligence (A.I.) ecosystem, making it easier for customers to build on the infrastructure.
Nvidia and Marvell will also collaborate on silicon photonics technologies and telecommunications networks, said the companies in a joint news release.
“Together with Marvell, we are enabling customers to leverage NVIDIA’s AI infrastructure ecosystem and scale to build specialized AI compute,” said Nvidia CEO Jensen Huang in the statement.
Nvidia has made several similar $2 billion U.S. investments in technology companies over the past few months.
Those investments have included companies such as Synopsys (SNPS), CoreWeave (CRWV), Coherent (COHR), and Lumentum (LITE).
Nvidia, the world’s leading A.I. chipmaker, most recently invested $2 billion U.S. in Nebius Group (NBIS) earlier in March.
Prior to today (March 31), MRVL stock had risen 43% in the last 12 months to trade at $87.81 U.S. per share.
NVDA stock has gained 52% in the past year to trade at $165.17 U.S. a share.
