Marvell Technology shares popped Tuesday after the company announced a $2 billion investment from Nvidia and expanded partnership.

Nvidia said it will add custom Marvell products to its infrastructure, growing its offerings for its customers building data centers.

A new deal with Nvidia is sending shares of Marvell Technology soaring Tuesday.

Shares of Marvell (MRVL) were up over 7% in recent trading after the company announced a $2 billion investment from Nvidia (NVDA) and expanded partnership bringing more of Marvell's semiconductors and networking products into its infrastructure. Nvidia shares climbed about 3%.

Nvidia said that the partnership will offer "customers building on NVIDIA architectures greater choice and flexibility in developing next-generation infrastructure" with the addition of custom Marvell products.

Nvidia CEO Jensen Huang told CNBC in a televised interview Tuesday that the move is expected to help grow the total addressable market for both companies, and that Nvidia wants to have a stake in that expanded opportunity for Marvell.

Marvell's growing ties with Nvidia could further boost confidence in the stock, which has outperformed the broader S&P 500 and many of its peers in the semiconductor industry so far this year.

Marvell topped estimates in its latest quarterly report earlier this month and said it expects revenue to grow by about 30% this year as sales of its data center products surge.

For Nvidia, the Marvell deal marks the latest in a string of recent investments that have boosted its partners' stocks, including Coherent (COHR), Lumentum (LITE), and Nebius Group (NBIS). Nvidia has also bought up shares in a number of other tech companies in recent quarters.

With Tuesday's rise, Marvell shares have gained 13% since the start of the year, while Nvidia is down about 8% over the same period.

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