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TD Cowen maintained its buy rating and $70 price target on Marvell (NASDAQ:MRVL), currently trading at $75.07, following the company’s Custom AI Silicon virtual event. InvestingPro data shows 15 analysts have recently revised their earnings estimates upward, with the stock maintaining strong momentum despite high market volatility. The event was held in place of a postponed Analyst Day.
During the presentation, Marvell showcased its intellectual property portfolio and outlined what it sees as a $94 billion market opportunity across the datacenter segment. As a prominent player in the Semiconductors industry with projected 43% revenue growth for FY2026, the company detailed its capabilities in custom artificial intelligence silicon solutions.
TD Cowen acknowledged some concerns regarding competitive dynamics in the custom XPU (accelerated processing unit) space but remains optimistic about Marvell’s prospects. The firm had previously published a deep dive analysis on these competitive challenges.
The research firm believes Marvell’s current stock price reflects "limited success" in the AI market, suggesting potential upside if the company executes effectively on its strategy. TD Cowen’s maintained price target represents confidence in Marvell’s ability to capitalize on AI-related opportunities.
TD Cowen expressed the view that "the rising tide" in AI technology adoption would benefit multiple industry players, including Marvell, despite competitive pressures in the space.
In other recent news, Marvell Technology has been the focus of several key developments. The company has seen its price target raised by BofA Securities to $90, maintaining a Buy rating, due to its growth in AI and an expanded pipeline in its custom-compute segment. Marvell also raised its market estimates, projecting a total addressable market of $55 billion for compute and $94 billion for data centers by 2028. Piper Sandler reiterated its overweight rating with a price target of $85, highlighting Marvell’s strategic positioning in the data center market and limited competition. Wolfe Research maintained its Outperform rating and $90 price target, emphasizing Marvell’s potential $19 billion in data center revenue by 2028, despite ongoing investor concerns about project sustainability.
Additionally, Marvell announced a partnership with Empower Semiconductor to develop integrated power solutions for AI and cloud data centers, aiming to enhance efficiency and performance. UBS maintained its Buy rating and a $100 price target, citing Marvell’s expanding customer base in custom computing solutions and engagements with major tech companies like Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT). The firm, however, expressed some skepticism about Marvell’s ability to sustain a 50% compound annual growth rate in its AI business through 2028. These developments reflect Marvell’s strategic efforts to strengthen its position in the rapidly evolving AI and data center markets.
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