How Marvell Stock Benefits From The Amazon-Anthropic Connection

Marvell Technology (NASDAQ:MRVL) is currently the most mispriced infrastructure play in the AI semiconductor sector. Over the past year, its stock has dropped roughly 27%, while Broadcom is up about 46%, and Nvidia has gained more than 40%. While the market has focused on Nvidia’s GPU dominance and Broadcom’s software and networking-integrated growth, Marvell has quietly restructured its revenue mix to be 73% data center-centric.

So what is the opportunity here?

Trading at a mere 23x estimated FY’27 earnings, Marvell’s valuation does not yet reflect the massive capital expenditure surge from Amazon or the enterprise scaling of Anthropic’s models, which we see as two major tailwinds for the company.

Big AI Spending Announcements

Led by a $200 billion spending plan from Amazon, the four largest internet companies are on track to spend about $650 billion on capital expenditures this year, roughly 60% more than last year. Amazon’s budget alone is 52% higher year-over-year and exceeds what Google and Microsoft spent combined in 2025. This level of investment is likely to be concentrated on AI data centers, custom silicon, networking, and optical interconnects—precisely the categories where Marvell has been building depth over the past several years. Who Profits from Massive Hyperscaler AI Spending?

Marvell’s custom silicon opportunity has been tightly linked to Amazon. AWS designs its own AI accelerators, including Trainium and Inferentia, using a combination of internal teams and external partners. Marvell is one of the primary design partners for these programs, providing IP, integration expertise, and co-development across multiple generations. The second and potentially larger lever is networking and optics. Because Marvell participates across multiple layers of the stack, incremental Amazon spending has a multiplier effect on its addressable revenue. The same applies, to a lesser extent, to other hyperscalers adopting similar architectures.

Marvell’s SaaS Advancements

The deepening architectural partnership between Amazon and Anthropic could also secure Marvell’s long-term revenue. Amazon has invested $8 billion in Anthropic, positioning AWS as the primary training partner for the Claude models. Anthropic has committed to building and deploying its flagship models – including the recently launched Claude 4.6 – exclusively on Amazon’s Trainium and Inferentia hardware.

Last week’s “SaaSpocalypse,” triggered by the launch of Claude Cowork and Claude 4.6, wiped out $285 billion in software market cap as Anthropic demonstrated that agentic AI can autonomously replace traditional software workflows. By demonstrating that agentic AI can autonomously execute complex legal, financial, and coding workflows, Anthropic signaled a move away from expensive third-party software toward integrated, model-driven work.

While this roiled the broader market, we have a sense that this could be a big tailwind for Marvell. As enterprises transition these massive, autonomous workloads to AWS, they move toward infrastructure optimized for cost and throughput. Because Marvell provides some of the custom chips Anthropic relies on, every breakthrough in Claude’s capabilities translates into sustained demand for Marvell’s silicon.

How The Stock Rerates

At roughly 28x estimated FY’27 earnings, Marvell trades below many AI-exposed peers despite expectations for sharp earnings growth (80% consensus this year and 24% next year) as legacy carrier and enterprise networking declines fade. Marvell’s underperformance over the past year has framed it as a secondary beneficiary of AI, with some delays in customer uptake adding to the negative sentiment. That said, the combination of Amazon’s historic capex expansion and Anthropic’s scaling on AWS infrastructure challenges that framing. These forces align directly with Marvell’s investments in custom compute, high-speed networking, and optical interconnects. To be sure, execution risk remains, but the demand signals are becoming harder to ignore.

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