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Piper Sandler maintained its overweight rating and $85.00 price target on Marvell Technology (NASDAQ:MRVL) Wednesday following the company’s AI investor day. According to InvestingPro data, analysts are broadly optimistic, with 15 analysts recently revising their earnings estimates upward. The firm cited Marvell’s growth strategy and positioning in the expanding data center market as key factors supporting the rating.
The semiconductor company outlined its path to capturing approximately 20% share of the overall data center market, which is projected to reach about $94 billion by 2028. With revenue growth of 21.6% in the last twelve months and analysts forecasting 43% growth next fiscal year, Marvell’s competitive advantages include its proprietary intellectual property, SerDes technology, optical capabilities, and advanced packaging expertise.
Piper Sandler noted that Marvell faces limited competition in its space, identifying Broadcom (NASDAQ:AVGO) as the only significant rival. The firm expressed confidence in Marvell’s technological portfolio and competitive positioning within the XPU (accelerated computing) market.
Investor reaction to the event was described as muted, which Piper Sandler attributed to expectations for a new XPU win announcement with a major high-performance computing player that did not materialize. While Marvell did announce new customers, these were with emerging rather than established HPC companies.
The firm recommended investors focus on Marvell’s long-term potential given the large total addressable market and the company’s competitive positioning rather than short-term expectations. Marvell stock closed at $69.85 on Wednesday, down 1.2% for the session. InvestingPro analysis shows the stock has experienced significant volatility, with a beta of 1.76 and a 33.4% decline over the past six months. Discover 12 more exclusive insights and detailed financial metrics with InvestingPro’s comprehensive research report.
In other recent news, Marvell Technology has been actively engaging in various strategic developments. The company announced a collaboration with Empower Semiconductor to create integrated power solutions for its custom silicon platforms, aiming to enhance efficiency in AI and cloud data centers. Wolfe Research maintained its Outperform rating on Marvell, highlighting the company’s projection of a $94 billion AI market over the coming years, with potential revenue growth in data centers and custom XPU solutions. UBS also reiterated a Buy rating, recognizing Marvell’s expanded customer base in custom computing solutions, including new engagements with major tech companies like Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT).
Benchmark continued its Buy rating, citing Marvell’s potential to capture a significant share of the Data Center and accelerated custom compute market by 2028. The firm emphasized Marvell’s market-leading interconnect portfolio and the ongoing recovery in its Carrier Infrastructure and Enterprise Networking businesses. Loop Capital shared a similar sentiment, maintaining its Buy rating and noting that Marvell’s custom AI ASICs could evolve into a multi-billion-dollar revenue stream. This strategic focus positions Marvell to compete with existing GPU-based accelerators from companies like NVIDIA (NASDAQ:NVDA) and AMD (NASDAQ:AMD).
These developments reflect Marvell’s commitment to expanding its footprint in the AI semiconductor space, with several analyst firms expressing confidence in the company’s growth prospects.
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