Marvell's stock price surged 241% in one year; CEO: Building trust with hyperscale cloud providers is the core driving force.

Chipmaker Marvell Technology's stock price has surged approximately 241% over the past year, far outpacing rival Broadcom's 6.6% gain during the same period. CEO Matt Murphy attributes this impressive performance to a core asset built over a decade: deep relationships of trust with the world's leading technology companies.

Murphy stated on CNBC on Tuesday that in this market, hyperscale cloud vendors and their surrounding ecosystem are essentially built on trust. " I believe trust plays a crucial role in our brand and reputation," he said. He emphasized that hyperscale cloud vendors need to be confident that suppliers can deliver increasingly complex chips on time and at scale, and Marvell has earned market recognition precisely because of this capability.

This trust advantage has translated into substantial business growth. According to FactSet data, Marvell's data center revenue is projected to grow by 60% in fiscal year 2027 and further accelerate to 61% in fiscal year 2028. The company plans to hold an investor day in early October, where it is expected to disclose more long-term financial goals, which is attracting significant market attention.

Ten years of trust building drive comprehensive ecosystem development.

Murphy points out that hyperscale cloud vendors consider factors such as the engineering team's delivery capabilities, management integrity, production capacity and supply stability, and the CEO's trustworthiness when selecting chip suppliers. He compares this logic to AMD's transformation under Lisa Su's leadership—who, after becoming CEO in October 2014, prioritized stable product execution and on-time delivery, ultimately achieving a full recovery for the company.

It is through this built-up trust that Marvell has been able to establish a broad presence in the AI ecosystem, rather than relying on a single customer or chip architecture. Murphy stated that the company currently supplies custom chips to all four major U.S. hyperscale cloud vendors, while also widely selling optical interconnect products across the industry. "We're basically the 'Switzerland' of the entire market now, working with everyone," he said.

With a series of major collaborations being finalized, the Google agreement is particularly crucial.

Over the past year, Marvell has continued to deepen its collaborations with key players in the AI ecosystem. In March of this year, the company announced a significant partnership with Nvidia; in August, Marvell signed a multi-year technology supply agreement with Google—Google has long been considered Broadcom's most important custom chip customer, and this shift carries significant market implications.

However, competitive pressure cannot be ignored. Also on Tuesday, Marvell's long-time customer Amazon announced a partnership with rival Qualcomm, highlighting the increasingly fierce competition for hyperscale cloud business. When asked about this by CNBC host Jim Cramer, Murphy remained composed, stating, "It's a competitive market, and we are very confident in our position within it and our evolution across all U.S. hyperscale cloud vendors and the entire ecosystem."

Data center revenue is growing rapidly, making investor day a recent focus.

Marvell's current growth momentum is primarily driven by its data center business. FactSet data shows that this segment's revenue is projected to grow by 60% and 61% in fiscal years 2027 and 2028, respectively, leading the industry in growth rates.

The company is scheduled to hold an investor day in early October, where it is expected to provide more specific guidance on its long-term financial goals. This event is seen as a significant catalyst by the market, with investors focusing on how Marvell is translating its existing customer relationships and technological advantages into a sustainable path to profitable growth.

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