Marvell Technology's AI Ambitions Boost Stock and Analyst Optimism

Marvell Stock Jumps After AI Event Shows 'Stronger' Growth Pipeline, BofA Says

Marvell shares have lost roughly a third of their value this year as macroeconomic concerns and a recent soft outlook have hurt the company's stock. Shares of Marvell Technology (MRVL) popped Wednesday as analysts said the chipmaker's Custom AI event revealed an expanded growth opportunity. Bank of America raised its price target to $90 from $80 following the Tuesday event, which it said highlighted a "[s]tronger, more diverse pipeline" that could help Marvell stock "catch up to its AI peers." Marvell shares rose nearly 7% in recent trading to about $75. At the event, Marvell said its total addressable data-center market is expected to reach $94 billion by 2028, up from its prior estimate of $75 billion, according to a transcript made available by AlphaSense. The company also announced two new clients for its next-generation AI accelerator chips, on top of three existing major customers. BofA said Big Tech investing heavily in AI infrastructure is a "rising tide" that can drive potential upside for Marvell. Deutsche Bank analysts said Marvell is "one of the very few companies capable of addressing the rapidly growing custom data center silicon market." The bank holds a price target of $85 for Marvell stock. Meanwhile, Citi and Morgan Stanley maintained targets of $96 and $73, respectively. Despite Wednesday's share gains, Marvell stock has lost roughly a third of its value this year after hitting a record high in January. Last month, Marvell offered a narrowed quarterly revenue forecast that failed to impress investors amid an uncertain macroenvironment, and a decision then to delay its investor day raised additional concerns.

Marvell Technology Stock Is Soaring Wednesday: What's Going On? - Marvell Tech (NASDAQ:MRVL)

Marvell Technology Inc MRVL shares are surging Wednesday after multiple analysts reiterated positive ratings following the company's custom AI investor event. What Happened: Marvell showcased its comprehensive technology platform that aims to enable the next generation of custom AI infrastructure at an event on Tuesday. Following the presentation, several analysts reiterated Buy ratings. Here's a look at the analyst updates that rolled in on Wednesday: BofA Securities analyst Vivek Arya maintained Marvell with a Buy and raised the price target from $80 to $90. Rosenblatt analyst Kevin Cassidy maintained Marvell with a Buy and a price target of $124. Benchmark analyst Cody Acree reiterated Marvell with a Buy rating and maintained a price target of $95. Needham analyst Quinn Bolton reiterated Marvell with a Buy and maintained a price target of $85. Marvell highlighted an expanded opportunity with custom XPU attach and said it sees a 26% increased in its data center total addressable market over the coming years. The company now forecasts a data center TAM of $94 billion, up from $75 billion previously. Marvell on Wednesday also announced a collaboration with Empower Semiconductor in which Empower will develop optimized integrated power solutions for Marvell custom silicon platforms. The companies aim to support the increasing demands of next-generation XPUs. MRVL Price Action: Marvell Technology shares were up 6.94% at $74.85 at the time of publication Wednesday, according to Benzinga Pro. Read Next: Marvell Launches New Power Regulator And 2nm Memory Chips To Boost AI, Cloud Efficiency Photo: JHVEPhoto/Shutterstock. MRVLMarvell Technology Inc$74.856.94%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentum19.10Growth20.11QualityNot AvailableValue16.91Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Marvell Technology Has 'Sustainable Growth Strategy,' Analysts Say - Marvell Tech (NASDAQ:MRVL)

Shares of Marvell Technology Inc. MRVL rallied in early trading on Wednesday, after the company hosted its Custom AI Investor Event on Tuesday. Needham analyst Quinn Bolton maintained a Buy rating and price target of $85. JPMorgan analyst Harlan Sur reiterated an Overweight rating and price target of $130. Check out other analyst stock ratings. Needham: Marvell indicated that it estimates its Data Center TAM (total addressable market) at $94 billion in 2028. That's up from its previous projection of $75 billion. All four subsegments of the division are expected to contribute to this growth, Bolton said in a note. Marvell introduced 'Custom XPU attach', which represents "an increasingly strategic portion of its Data Center TAM," growing at a CAGR (compounded annual growth rate) of 90% from 2023-2028, "significantly outpacing the 47% CAGR of the Custom XPU segment. "We see Custom XPU attach as a particularly rich opportunity for MRVL given its networking and processing background," he further wrote. JPMorgan: Marvell presented a "compelling and sustainable growth strategy for its AI datacenter networking/ASIC business," Sur said. With new design wins confirmed, the company now has design wins for 18 multi-generational sockets, "which should help drive its ASIC AI silicon market share to 20% by 2028," he added. "The team is driving strong product innovation and investing in sustaining its leading-edge technology, given its strong R&D scale ($2B+ per year)," the analyst wrote. If Marvell executes well on its datacenter growth strategy and captures 20% of the datacenter TAM opportunity by 2028, there could be "significant upside' to its stock, he further stated. Price Action: Shares of Marvell Technology had risen by 8.36% to $75.84 at the time of publication on Wednesday. Read More: Marvell Launches New Power Regulator And 2nm Memory Chips To Boost AI, Cloud Efficiency Image: Shutterstock MRVLMarvell Technology Inc$74.786.85%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum19.10Growth20.11QualityNot AvailableValue16.91Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Marvell Technology: The Smartest AI Stock You're Probably Undervaluing (NASDAQ:MRVL)

Risks include thinner ASIC margins and potential competition, but Marvell's deep hyperscaler partnerships and technology edge make it a top AI value play. Elevator Thesis Marvell Technology (NASDAQ:MRVL) impressed one and all at its "Custom AI Investor Day" event last week. From its robust custom chips to industry-first 2nm SRAM and high-volume wins with Amazon (AMZN) and Microsoft ( Undercovered Deep Insights is led by Moz (Muslim) Farooque, a seasoned market analyst and storyteller whose research has been featured on Seeking Alpha, Yahoo Finance, InvestorPlace, Barchart, Equities, and GuruFocus. Moz combines investigative financial journalism with robust modeling to unearth under‑the‑radar stock and crypto opportunities. He's a Fellow Member of ACCA and holds a BSc in Applied Accounting and Finance from Oxford Brookes University. Analyst's Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.