How Investors May Respond To Marvell Technology (MRVL) Powering Microsoft Azure’s Expanded Cloud Security Service

• On August 18, 2025, Microsoft announced it had selected Marvell Technology’s LiquidSecurity hardware security modules (HSMs) to power its Azure Cloud HSM service, extending their existing partnership across multiple Azure key management offerings.
• This expanded collaboration highlights Marvell’s distinct PCIe-based approach to HSMs, which allows cloud providers to deliver scalable, power-efficient security while enabling easier access to encryption services for customers.
• We’ll examine how Marvell’s expanded role with Microsoft could influence its positioning in the expanding HSM-as-a-service market.

Find companies with promising cash flow potential yet trading below their fair value.

Marvell Technology Investment Narrative Recap

To back Marvell Technology, investors generally need confidence in the company’s ability to grow within cloud data infrastructure, particularly as AI and security demands surge. The recent expansion of Marvell’s partnership with Microsoft, involving the use of LiquidSecurity HSMs for Azure Cloud HSM, could improve Marvell’s short-term positioning in the HSM-as-a-service space, but does not materially alter the existing risk of relying heavily on a limited set of hyperscale customers for revenue growth and stability.

Among recent company news, the June 18 announcement of a collaboration with Empower Semiconductor to optimize integrated power solutions for Marvell’s custom silicon platforms is especially relevant. This type of partnership aims to boost efficiency in AI and cloud infrastructure and closely aligns with Marvell’s focus on performance and margin improvement, which has been highlighted as a key growth catalyst.

However, it’s important for investors to consider, in contrast, the ongoing risk related to Marvell's customer concentration and the possibility that shifts in hyperscale purchasing priorities could limit...

Read the full narrative on Marvell Technology (it's free!)

Marvell Technology's narrative projects $11.8 billion revenue and $2.5 billion earnings by 2028. This requires 22.1% yearly revenue growth and a $3.0 billion increase in earnings from the current -$491.5 million.

Uncover how Marvell Technology's forecasts yield a $90.31 fair value, a 18% upside to its current price.

Exploring Other Perspectives

Private investors in the Simply Wall St Community estimate Marvell's fair value between US$42.16 and US$121.99, across 21 different viewpoints. Despite this wide spectrum, keep in mind that Marvell’s revenue is heavily concentrated among a few hyperscale clients, a factor that could increase earnings volatility and affect how various investors assess future performance.

Explore 21 other fair value estimates on Marvell Technology - why the stock might be worth 45% less than the current price!

Build Your Own Marvell Technology Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Marvell Technology research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Marvell Technology research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Marvell Technology's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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