Marvell stock holds Buy rating at Benchmark on custom AI potential

Marvell Technology (NASDAQ:MRVL) maintained its Buy rating and $95 price target at Benchmark, following the company’s Custom AI event on Tuesday. The semiconductor company, currently trading at $70, has seen 15 analysts revise their earnings estimates upward for the upcoming period, according to InvestingPro data.

During the event, Marvell showcased its capabilities in helping customers develop tailored accelerated compute solutions and compute attach products. The company highlighted expectations for significant total addressable market growth and an increasing number of customers, design wins, and engagement opportunities.

Marvell projected it would capture approximately 20% market share in the Data Center and accelerated custom compute segment by 2028, according to Benchmark. The firm described the update as "highly encouraging" and suggested it supports long-term growth expectations with potential upside to intermediate-term Street estimates.

Benchmark’s $95 price target represents 26 times its fiscal year 2027 earnings per share estimate of $3.60, or a two-year average forward PEG ratio of 0.5x. The firm’s continued Buy recommendation also reflects industry trends showing strong Data Center demand.

The investment firm cited additional factors supporting its rating, including Marvell’s market-leading interconnect portfolio and the broad cyclical recovery underway in the company’s Carrier Infrastructure and Enterprise Networking businesses.

In other recent news, Marvell Technology has captured attention with several key developments. The company announced the creation of the industry’s first 2nm custom SRAM technology designed for AI infrastructure, promising significant improvements in memory speed and efficiency. This innovation is part of Marvell’s broader strategy to enhance its custom technology platform, which includes advanced solutions for cloud servers and AI applications. Additionally, Marvell’s recent investor events have spotlighted its growing presence in the custom AI market. Rosenblatt Securities reiterated a buy rating with a $124 price target, citing Marvell’s technological advantages and expanding market opportunities. Meanwhile, Loop Capital and Stifel also maintained buy ratings, highlighting the company’s potential in the custom AI ASIC space. Cantor Fitzgerald raised its price target to $75, acknowledging Marvell’s expanding market but expressing caution about specific customer engagements. These developments underscore Marvell’s strategic focus on custom AI solutions and its efforts to capture a significant share of the growing semiconductor market.

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