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Investing.com - Morgan Stanley (NYSE:MS) has raised its price target on Marvell (NASDAQ:MRVL) to $80.00 from $73.00 while maintaining an Equalweight rating on the stock. According to InvestingPro data, the stock is currently trading near its Fair Value, with analysts setting targets ranging from $64.31 to $133.00.
The firm increased its 2026 multiple from 32x to 35x on $2.28 of MW EPS, which translates to approximately 25x non-GAAP EPS of $3.15.
Morgan Stanley noted that Marvell is "firmly in the AI winners camp," though market sentiment has turned "aggressively negative" compared to a few months ago.
The investment bank expressed greater enthusiasm for Marvell’s opportunity in optical technology, which it believes offers higher margins and more durability compared to the company’s ASIC opportunity.
Morgan Stanley specifically mentioned that Marvell’s ASIC opportunity "has disappointed," contrasting with its more positive outlook for the optical segment.
In other recent news, Marvell Technology, Inc. announced a collaboration with Rebellions Inc. to develop custom AI systems aimed at supporting regionally driven AI initiatives in Asia-Pacific and the Middle East. This partnership will leverage Marvell’s advanced platforms to create energy-efficient AI systems at scale. Additionally, Marvell has appointed Rajiv Ramaswami, CEO of Nutanix (NASDAQ:NTNX), to its Board of Directors, bringing over 30 years of technology industry experience to the company. In analyst coverage, Stifel reiterated its Buy rating on Marvell with a price target of $80, reflecting confidence in the company’s growth prospects. Meanwhile, Goldman Sachs initiated coverage with a Neutral rating and a $75 price target, highlighting Marvell’s role as a leader in optical DSPs and its recent customer wins. These developments come amidst a broader industry context where companies like Microsoft (NASDAQ:MSFT) are adjusting their AI chip roadmaps due to development delays.
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