Morgan Stanley says Nvidia custom AI silicon wouldn’t be negative for Marvell

Morgan Stanley analyst Joseph Moore notes that Reuters reported late last week citing nine sources familiar with the matter that Nvidia (NVDA) was building a group to build custom silicon for AI. Marvell’s (MRVL) stock was weak in the aftermath of the report, but the firm doesn’t view this “that negatively,” arguing that if Nvidia puts resources into custom silicon, it would “certainly be validation that custom silicon is making inroads.” While still not sure how competitive custom chips from Marvell will prove to be in the long run, it wouldn’t view Nvidia’s potential market entry negatively for Marvell, the analyst added. Morgan Stanley keeps an Equal Weight rating on Marvell shares.