Marvell (MRVL) and GlobalFoundries (GFS) Rise on Expanded Deal: What Investors Should Know

Marvell (MRVL) and GlobalFoundries (GFS) Rise on Expanded Deal: What Investors Should Know

Ali Ahmed

Sat, September 19, 2026 at 6:57 PM GMT+3 4 min read

• MRVL +1.45%
• GFS +4.32%

On September 17, shares of Marvell Technology, Inc. (NASDAQ:MRVL) and GLOBALFOUNDRIES Inc. (NASDAQ:GFS) moved sharply higher, with Marvell Technology, Inc. (NASDAQ:MRVL) gaining more than 4% and GLOBALFOUNDRIES Inc. (NASDAQ:GFS) rising more than 6% by the end of the trading session.

Reuters reported that the two companies have expanded their agreement to increase production capacity for silicon germanium (SiGe), a semiconductor technology used in high-speed optical connections for data centers. The multi-year agreement will expand capacity for GLOBALFOUNDRIES Inc.'s (NASDAQ:GFS) SiGe technology at its facility in Burlington, Vermont. SiGe allows semiconductor devices to operate at higher speeds while using less energy, making it increasingly important as data centers handle larger volumes of data.

Robb Johnson, Vice ​President, Foundry Technology at Marvell Technology, Inc. (NASDAQ:MRVL) said the expanded collaboration will help ensure that the company has the "SiGe technology and manufacturing capacity ​to support ⁠the significant growth" it expects ahead.

According to the report, the increased manufacturing capacity will help Marvell Technology, Inc. (NASDAQ:MRVL) meet growing demand for optical networking products, including pluggable optical transceivers, near-packaged optics, and co-packaged optics.

GlobalFoundries Is Seeing Strong SiGe Demand

GLOBALFOUNDRIES Inc.'s (NASDAQ:GFS) recent results show why the expanded capacity could be an important growth driver for the company. The company reported $1.786 billion in revenue for the second quarter of 2026, up 6% year over year, supported by strong demand from its communications infrastructure and data center end market.

The communications infrastructure and data center segment accounted for about 16% of total Q2 2026 revenue. Revenue from the end market increased 20% sequentially and 62% year over year, marking the seventh consecutive quarter of double-digit year-over-year growth and its fastest quarterly growth since 2022.

Within this end market, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is seeing strong customer demand for its silicon photonics and SiGe offerings. CEO Tim Breen said demand for SiGe remains strong and that the company is "oversubscribed throughout 2027."

Marvell Benefits From Rising AI Demand

Meanwhile, Marvell Technology, Inc. (NASDAQ:MRVL) continues to benefit from the surge in demand for AI-focused data center infrastructure. In the second quarter of fiscal 2027, the company reported record net revenue of $2.739 billion, representing 37% year-over-year growth.

The company's Chairman and CEO Matt Murphy said "AI-related bookings remain exceptionally robust" and that the company expects revenue growth to accelerate through the rest of fiscal 2027. The company also raised its revenue outlook for fiscal 2027 and fiscal 2028 compared with the guidance provided in the previous quarter.

Marvell Technology, Inc. (NASDAQ:MRVL) is seeing broad-based strength across its data center portfolio, with strong demand in Connectivity and a significant acceleration expected in its Custom business starting in the second half of fiscal 2027.

However, the company also faces risks if AI infrastructure spending slows. Lower capital spending by cloud providers or greater development of in-house chips could pressure its market share, while competition also remains intense.

What the Numbers Say

Hedge fund interest in both companies increased in the second quarter. According to Insider Monkey's database, 46 hedge funds held GLOBALFOUNDRIES Inc. (NASDAQ:GFS) at the end of the second quarter, up from 44 in the first quarter.

Marvell Technology, Inc. (NASDAQ:MRVL) saw a larger increase, with 96 hedge fund portfolios holding the stock, compared with 79 in the previous quarter.

Short interest, however, remains notably different between the two companies. As of August 31, short interest represented 5.09% of Marvell Technology, Inc.'s (NASDAQ:MRVL) float, compared with 14.94% for GLOBALFOUNDRIES Inc. (NASDAQ:GFS).

Valuation also creates a clear difference between the two stocks. Marvell Technology, Inc. (NASDAQ:MRVL) is a bit pricey, trading at a forward price-to-earnings ratio of 54.64, while GLOBALFOUNDRIES Inc. (NASDAQ:GFS) trades at 16.86 times forward earnings.

The two companies are not direct competitors, but rather complementary partners in the semiconductor supply chain. However, both companies have direct exposure to the growing demand for AI data center infrastructure.

Marvell Technology, Inc. (NASDAQ:MRVL) appears to be delivering much faster overall revenue growth and has seen particularly strong AI-related bookings, but its valuation leaves little room for disappointment, especially if AI spending or its growth trajectory slows down.

On the other hand, GLOBALFOUNDRIES Inc. (NASDAQ:GFS) is seeing strong growth in its communications infrastructure and data center business, with SiGe demand already oversubscribed through 2027. Alongside visible SiGe demand, it also offers a lower valuation. However, investors may want to note that its higher short interest points to greater skepticism.

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