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Loop Capital reiterated its buy rating and $90.00 price target on Marvell (NASDAQ:MRVL) Wednesday following the company’s two-hour analyst briefing focused on custom AI silicon. The semiconductor company generated approximately $650 million in custom ASIC revenue in fiscal year 2025, representing about 11% of its $6.5 billion total revenue. According to InvestingPro data, Marvell maintains a strong market position with a market capitalization of $60.3 billion, though currently trading at premium valuation multiples.
Loop Capital believes Marvell’s custom AI ASICs could soon develop into a multi-billion-dollar revenue stream for the company. The firm views these custom solutions as both alternatives and complements to GPU-based accelerators currently provided by competitors like NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD). InvestingPro analysis shows Marvell’s revenue has grown at a robust 16% CAGR over the past five years, with analysts projecting 43% revenue growth for fiscal year 2026.
The analyst briefing highlighted Marvell’s strategy to develop custom AI ASICs specifically for cloud service providers. This approach positions the company to capture market share in the rapidly expanding artificial intelligence semiconductor space. With 15 analysts recently revising their earnings estimates upward and a healthy gross profit margin of 49%, Marvell shows promising fundamentals. For detailed analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks.
Loop Capital’s analysis included revenue sensitivity based on serviceable available market and market share assumptions. The firm also provided details on individual customer AI ASIC projects and potential intermediate-term volumes for Marvell.
Marvell’s dedicated resources for the analyst briefing demonstrated management’s enthusiasm about the revenue potential for custom AI silicon, according to Loop Capital. The firm noted this was a follow-up to Marvell’s previous custom AI silicon briefing held in April 2024.
In other recent news, Marvell Technology has been the focus of several significant developments. The company announced the creation of the industry’s first 2nm custom Static Random Access Memory (SRAM) technology for AI infrastructure, which promises to enhance memory efficiency and reduce power consumption. Additionally, Marvell unveiled its custom Ultra Accelerator Link (UALink) solution, designed to improve interconnect capabilities between AI accelerators and switches, further bolstering its custom AI compute platforms. Analysts have also been active in assessing Marvell’s prospects. Stifel reiterated a buy rating and maintained an $80 price target, emphasizing Marvell’s strong position in the custom AI market. Cantor Fitzgerald raised its price target from $60 to $75, while maintaining a Neutral rating, citing the company’s growing total addressable market. Rosenblatt Securities reiterated a buy rating with a $124 price target, highlighting Marvell’s technological advantages in the custom ASIC sector. These developments underscore Marvell’s strategic advancements and the attention it is garnering from analysts.
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