Shares of Marvell Technology surged 9% after Nvidia announced plans to invest $2 billion in the semiconductor company as businesses race to meet ballooning artificial intelligence demand.

Nvidia rose 1.5%

The deal ties Marvell into Nvidia’s AI ecosystem, making it easier for customers to build on the infrastructure. Both companies will also join forces on silicon photonics technology.

“Token generation demand is surging, and the world is racing to build AI factories,” said Nvidia CEO Jensen Huang said in a release. “Together with Marvell, we are enabling customers to leverage NVIDIA’s AI infrastructure ecosystem and scale to build specialized AI compute.”

Nvidia has made a string of $2 billion bets on technology companies in recent months.

That includes investments in Synopsys, CoreWeave, Coherent and Lumentum. Most recently, Nvidia invested $2 billion in Nebius Group. The AI cloud company on Tuesday revealed plans to build one of Europe’s largest datacenters.

The leading chipmaker has been a major beneficiary of the AI craze that’s swept up Wall Street in recent years, due to its graphics processing units, or GPUs, which underpin large language models.

Marvell is another major winner in the race. Shares popped this month after the company issued robust guidance and called for accelerating revenue growth into 2027 as AI demand surges.

“Our expanded partnership with NVIDIA reflects the growing importance of high-speed connectivity, optical interconnect and accelerated infrastructure in scaling AI,” said Marvell’s CEO Matt Murphy.