Marvell Technology's Stock Soars Amid AI Demand and Strategic Partnerships

Marvell Stock Is Soaring -- Here's Why

Colin is an Associate Editor focused on tech and financial news. He has more than three years of experience editing, proofreading, and fact-checking content on current financial events and politics. He received his M.A. in journalism from The New School and his B.A. in history and political science from McGill University. Shares of Marvell Technology (MRVL) soared on Wednesday after Morgan Stanley raised its price target on the chipmaker's stock, citing the "exceptional" strength of AI demand. Morgan Stanley analyst Joseph Moore on Wednesday raised his Marvell price target by about 10% to $80 while maintaining an "equal weight" rating. "Marvell is firmly in the AI winners camp, and sentiment has swung aggressively negative compared to a few months ago," Moore wrote. "We are more excited for their opportunity in optical, which brings higher margin and durability vs. their ASIC opportunity, which has disappointed." (ASIC refers to application-specific integrated circuit, a class of customizable chip that combines several circuits to perform tasks that would otherwise require multiple interconnected chips.) Marvell shares were up more than 9% in recent trading, making it the best-performing stock in the Nasdaq 100. Despite Wednesday's gain, Marvell shares are down about 23% since the start of the year. Marvell is just one of several semiconductor stocks Moore expects to benefit from strong AI demand over the next year. He also raised his 12-month price targets on Nvidia (NVDA) by 17%, Broadcom (AVGO) by 25%, Astera Labs (ALAB) by 26%, and Advanced Micro Devices (AMD) by more than 50%. All of those stocks were also trading in the green on Wednesday. (Read Investopedia's full coverage of today's trading here.) "While stock prices have moved higher, our conviction on AI spend durability in 2026 continues to grow," Moore wrote. Google parent Alphabet (GOOG) last week raised its full-year capital expenditures forecast, citing the need to accelerate data center buildouts to meet seemingly insatiable demand for AI and cloud computing. Investors will get more updates on the strength of AI investment after markets close on Wednesday when tech giants Microsoft (MSFT) and Meta (META) report earnings.

Why Marvell Technology Stock Is Trading Higher Today - Marvell Tech (NASDAQ:MRVL)

Marvell Technology MRVL traded higher Wednesday as the AI boom drives major tech companies to accelerate chip upgrades to meet surging global demand and strengthen their competitive positions. The semiconductor firm, which provides chip design and services across data centers, enterprise networks, consumer tech, telecom infrastructure, and automotive, is benefiting from the renewed momentum. Rebellions, a South Korea-based AI semiconductor company, has partnered with Marvell to develop high-performance, energy-efficient AI systems designed explicitly for sovereign-backed and regionally focused AI initiatives across Asia-Pacific and the Middle East. Also Read: Marvell Reshuffles Leadership As It Looks To Reignite Momentum, Rebuild Investor Confidence (CORRECTED) Through this collaboration, Rebellions will design custom AI accelerators using Marvell's advanced silicon platform, which includes cutting-edge packaging, high-speed SerDes, and die-to-die interconnect technology. The partnership aims to deliver tightly integrated, rack-scale AI inference systems that meet the growing demand for scalable, efficient, and sovereign-controlled AI infrastructure -- marking a strategic shift from traditional GPU-based architectures to specialized ASIC-driven solutions tailored for national competitiveness. Marvell stock has plunged over 25% year-to-date, lagging behind the NASDAQ Composite Index's 10% gains, as concerns about the Trump administration's tariff policy and macroeconomic uncertainties weigh on the stock. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get StartedRecent AI Policy Shifts Recent developments have reshaped the semiconductor industry's interconnected landscape, influencing valuations. The U.S. recently paused tech export restrictions to China to avoid disrupting trade talks and to support President Donald Trump's efforts to meet with Chinese President Xi Jinping, according to the Financial Times. This policy shift aligns with Nvidia's NVDA move to resume H20 AI chip sales to China, effectively reversing an earlier Trump-era ban. The change could benefit U.S. chipmakers as trade negotiations resume in Stockholm. The White House fueled industry optimism by launching "Winning the AI Race: America's AI Action Plan," detailing over 90 federal initiatives to strengthen AI leadership, innovation, and infrastructure. The administration plans to fast-track data centers and chip plant permits, boost workforce training, streamline regulations, and ensure fairness in AI-related contracts. Meanwhile, Nvidia reportedly ordered 300,000 H20 AI chips from contract chipmaker Taiwan Semiconductor Manufacturing Co TSM, signaling a shift in its production strategy. Advanced Micro Devices AMD also gained ground by capitalizing on AI demand, raising the price of its MI350 chip to $25,000. Price Action: MRVL stock was trading higher by 7.34% at $82.00 as of last check Wednesday. Read Next: United Microelectronics Chief Cautions Currency, Trade Policy Could Dampen Gains Photo by JHVEPhoto via Shutterstock MRVLMarvell Technology Inc$81.176.33%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum39.20Growth19.73QualityN/AValue17.25Price TrendShortMediumLongOverviewAMDAdvanced Micro Devices Inc$178.190.43%NVDANVIDIA Corp$178.921.94%TSMTaiwan Semiconductor Manufacturing Co Ltd$242.560.51%Market News and Data brought to you by Benzinga APIs

Why Marvell Stock Popped Today | The Motley Fool

Moore (not the same guy who wrote Moore's Law) forecasts Marvell to earn $2.28 per share in 2026, and values the stock at 35 times forward earnings. "Marvell is firmly in the AI winners camp," writes Moore in a note covered on StreetInsider.com today, but "sentiment has swung aggressively negative" -- and now Marvell stock is down about 33% from its peak back in late January. Speaking of artificial intelligence, though, the other big Marvell news today is that Fubon Research is reporting interest in Microsoft (MSFT 0.03%) in upgrading from 3nm to a more advanced 2nm for its upcoming Maia300 AI chip -- which Marvell will produce. Fubon notes that the change is pushing back production (and revenue) for Marvell from Q1 2026 into Q4 2026 -- but the analyst thinks the chance to sell Microsoft a more advanced chip costing as much as $8,000 per unit "represents a substantial opportunity for Marvell." Fubon is guessing the new chip could add $2.4 billion to Marvell's revenue in 2026 and as much as $12 billion in 2027 -- a substantial sum when you consider that Marvell did only $5.8 billion in business in 2024! Does this make Marvell stock a buy? It depends. The stock costs a steep 47 times this year's estimated free cash flow. But analysts expect Marvell's FCF to double over the next two years, alongside the doubling in revenue. If the growth materializes as planned, Marvell stock actually could be cheap enough to buy.