AMD and Marvell Shares Surge on AI Chip Demand

Advanced Micro Devices (AMD) and Marvell Technology have seen their share prices rise approximately 185% and 227% respectively over the past year, fueled by the surge in artificial intelligence semiconductor demand. Advanced Micro Devices reported a 107% increase in data center revenue to $6.72 billion in Q2 FY2026, driven by the ramp of its Helios GPU and MI450 series. CEO Lisa Su noted that customer pull for Helios is tracking ahead of initial forecasts, with the company securing $100 billion inference deals with Meta Platforms and OpenAI, while adding Anthropic and Microsoft as customers.

To reduce latency and advance agentic AI, AMD is utilizing chiplet design and the acquisitions of MEXT and Taalas. However, the company faces challenges, including a 31% decline in gaming revenue and $440 million in inventory charges due to China export restrictions. AMD continues to compete for market share against Nvidia and Intel in the x86 server and AI accelerator markets, with management projecting the accelerator market will reach $1.4 trillion by 2030.

Marvell Technology has established a lead in optical interconnects and custom AI chips, providing intellectual property for Amazon's Trainium chips, Microsoft's Maia chip, and Alphabet's TPU architecture. While Marvell expects its interconnect revenue to grow 70% this fiscal year, the company faces potential headwinds regarding its future role in upcoming Amazon chip iterations.