Marvell Technology stock fell 7% due to worries over losing Amazon’s Trainium chip designs to Alchip. Data center revenue, 73% of Marvell’s sales, surged 80% year-over-year. Executives project data center revenue to double by 2028, with no Amazon revenue disruptions expected in fiscal 2026. Analysts remain divided on Marvell’s outlook.

Analyst downgrades Marvell stock over concerns of losing Amazon’s Trainium chip designs to Alchip. Microsoft exploring Broadcom as chip design partner, sparking fears of Marvell losing momentum in AI sector. Data center revenue, driven by major customers like Amazon and Microsoft, accounts for 73% of Marvell’s total sales.

Marvell’s stock decline stemmed from an analyst downgrade predicting loss of Trainium chip designs to Alchip. Microsoft exploring Broadcom as chip design partner adds to concerns about Marvell’s AI growth. Data center revenue, dominated by clients like Amazon and Microsoft, fuels Marvell’s growth.

Despite concerns, Marvell executives foresee no near-term disruptions in Amazon revenue for fiscal 2026. Analysts speculate on Marvell’s future, with some projecting data center revenue to double by 2028. Market remains divided on Marvell’s outlook amid competition from Alchip and Broadcom.

Read more at Yahoo Finance: Will Customer Defections Crumble Marvell Technology’s AI Empire?