Marvell price target raised to $90 from $80 at BofA on AI growth

BofA Securities raised its price target on Marvell (NASDAQ:MRVL) to $90 from $80 on Wednesday, while maintaining a Buy rating on the semiconductor company focused on data-center solutions. Currently trading at $76.03, the stock sits slightly above its InvestingPro Fair Value, with analyst targets ranging from $64.31 to $133. According to InvestingPro analysis, Marvell maintains a strong position in the Semiconductors industry, with 15 analysts recently revising earnings estimates upward.

The price target increase follows Marvell’s dedicated event for its custom-compute segment, where the company announced an expanded pipeline of 18 unique sockets across more than 10 customers, compared to just 3 sockets and 4 customers reported in April last year.

Marvell maintained its goal of capturing 20% market share in both compute and across the data center sector, while raising its total addressable market estimates to $55 billion for compute by 2028 (up from $43 billion previously) and $94 billion for data centers (up from $75 billion).

The company highlighted more than 50 opportunities spanning the next several years, positioning itself as one of the few franchises with comprehensive data-center focus and breadth of intellectual property across compute, XPU, networking, electro-optics, security, and memory/storage segments.

BofA noted potential concerns including that opportunity upgrades are weighted toward the latter half of 2027-2028, and that some opportunities fall into a new adjacent category called XPU-attach that wasn’t included in previous comparisons.

In other recent news, Marvell Technology has been the focus of several analyst firms following its AI investor day and other announcements. Piper Sandler maintained its overweight rating with a price target of $85, highlighting Marvell’s growth strategy and positioning in the data center market. Wolfe Research also reiterated its Outperform rating with a $90 price target, emphasizing Marvell’s potential in the AI market and its projected revenue growth. UBS kept its Buy rating and a $100 price target, noting Marvell’s expanding customer base in custom computing solutions, despite some skepticism about the company’s ability to sustain a 50% compound annual growth rate in AI. Benchmark maintained its Buy rating with a $95 price target, citing Marvell’s long-term growth potential and market-leading interconnect portfolio.

Additionally, Marvell announced a collaboration with Empower Semiconductor to develop integrated power solutions for its custom silicon platforms. This partnership aims to enhance power delivery systems for AI and cloud data centers by integrating voltage regulation directly into silicon chips. The collaboration is expected to improve efficiency and reduce power transmission losses, leveraging Empower’s FinFast technology. While financial details and product release timelines were not disclosed, this partnership underscores Marvell’s ongoing efforts to innovate in the AI and data infrastructure sectors.

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