Marvell Technology Inc. (MRVL) has rolled out a new program designed to help its partners build the cables that connect AI servers faster. It's called Golden Cable, and the basic idea is pretty straightforward: as hyperscalers race to build out massive AI data centers, they need tons of high-performance copper connections between racks. Marvell is giving cable manufacturers validated designs, advanced firmware, and engineering support to speed up the whole process.
The initiative focuses on active electrical cables, or AECs, which handle short-reach connections inside data centers. As AI workloads get heavier and rack densities increase, bandwidth demands keep climbing. Marvell's open architecture approach lets partners scale production while customizing features and ensuring everything works across different platforms.
"As AI infrastructure scales at an unprecedented pace, the need for open, high-performance AEC interconnect solutions has never been more critical," said Xi Wang, senior vice president and general manager of Marvell's Connectivity Business Unit.
Partners including Foxconn Interconnect Technology and Luxshare Technology say the program shortens design cycles and speeds up adoption of 1.6T connectivity. According to analyst firm 650 Group, the AEC market is expected to jump from $644 million in 2025 to $1.4 billion by 2029, fueled by rapid AI cluster growth.
Amazon Concerns Weigh on Stock Performance
While Marvell pushes forward with Golden Cable, the stock has been having a rough year. Shares are down 20% year-to-date and took another hit Monday when Benchmark downgraded the stock from Buy to Hold.
The concern? Benchmark believes Marvell likely lost Amazon.com Inc.'s (AMZN) Trainium 3 and Trainium 4 chip designs to competitor Alchip. The firm pointed to increased competitive pressures and expects slower growth as Amazon shifts its technology development to other partners. Benchmark noted that ongoing Trainium 2 shipments should still support near-term results, but the longer-term outlook appears cloudier.
Management Pushes Back on Customer Loss Narrative
Despite the speculation swirling around Amazon's next-generation chip programs, Marvell has pushed back on the narrative. The company says its major customer engagements with both Amazon and Microsoft Corp. (MSFT) remain on track for significant production ramps beginning in 2026.
JPMorgan analyst Harlan Sur reiterated an Overweight rating, highlighting Marvell's broader AI chip pipeline beyond just the Amazon relationship. Management emphasized it continues working to secure Trainium 3 orders at AWS and expects Microsoft's Maia AI chip program to scale in late 2026.
The company is also projecting that new AI chip wins will drive long-term growth, including a path toward $2 billion in annual XPU attach revenue by 2028. That's the bigger picture Marvell wants investors to focus on, even as questions about individual customer relationships create near-term volatility.
The stock reality check came despite these optimistic long-term projections. MRVL shares were up 1.35% at $90.10 during premarket trading on Wednesday.
