Why is NVIDIA Corporation (NVDA.US) investing in Marvell Technology, Inc.? Wedbush: Aims to strengthen NVLink Fusion technology.

Wedbush Securities stated that NVIDIA Corporation's $2 billion investment in and strategic partnership with Marvell Technology, Inc. is entirely for NVIDIA Corporation's NVLink Fusion technology. Analyst Matt Bryson wrote in a report to clients, "This partnership involves collaboration between NVIDIA Corporation and Marvell Technology, Inc. on core technologies such as NVLink, AI-RAM, optical networking, and SiPh. What we are not sure about is which of these technology collaborations is crucial for NVIDIA Corporation to drive this partnership. On the other hand, we believe that, given NVIDIA Corporation's $2 billion investment, Marvell Technology, Inc. has the incentive to complete this transaction, regardless of whether the collaboration with NVIDIA Corporation brings technical or operational benefits (or whether it does at all)." NVIDIA Corporation's NVLink Fusion is the tech giant's rack-scale AI infrastructure that enables hyper-scale data centers and custom ASIC designers (such as Marvell Technology, Inc.) to integrate their custom CPUs and XPUs with NVIDIA Corporation's NVLink interconnect technology. Marvell Technology, Inc. produces custom XPUs for several customers, including Microsoft Corporation and Amazon.com, Inc. As part of the deal, Marvell Technology, Inc. will provide custom AI accelerators (XPUs) and a horizontally scalable network compatible with NVLink Fusion. NVIDIA Corporation will provide its Vera CPUs, ConnectX network cards, Bluefield DPUs, NVLink interconnects, Spectrum-X switches, and rack-scale AI computing capabilities.