Marvell stock rating reiterated at Buy by UBS on custom ASIC growth

UBS maintained its Buy rating and $100.00 price target on Marvell (NASDAQ:MRVL) Wednesday, citing the company’s expanding customer base in custom computing solutions. According to InvestingPro data, analysts are broadly bullish on Marvell, with price targets ranging from $64 to $133, while the stock currently trades near Fair Value levels.

The investment firm noted that Marvell delivered on investor expectations by raising its forecast for the custom ASIC market while reiterating existing engagements with Amazon (NASDAQ:AMZN), Google (NASDAQ:GOOGL), and Microsoft (NASDAQ:MSFT). The company’s revenue grew 21.6% in the last twelve months, demonstrating strong market momentum.

Marvell added two new XPU customers, which UBS believes should address concerns about the company’s ability to win new business and grow custom compute revenue beyond calendar year 2026.

UBS expressed some skepticism about Marvell’s ability to grow its AI business at the approximately 50% compound annual growth rate implied through calendar year 2028.

The firm concluded that the expanding customer base shifts the overall outlook in a positive direction, supporting its decision to maintain both the Buy rating and $100 price target.

In other recent news, Marvell Technology has been the focus of several analyst assessments following its Custom AI events and briefings. Benchmark maintained its Buy rating with a $95 price target, highlighting Marvell’s potential to capture a significant share of the Data Center and accelerated custom compute segment by 2028. Loop Capital also reiterated a Buy rating and a $90 price target, emphasizing the potential for Marvell’s custom AI ASICs to become a multi-billion-dollar revenue stream. Meanwhile, Stifel reaffirmed its Buy rating and set an $80 price target, noting Marvell’s strong position in the custom AI market and its extensive customer engagement strategies.

Cantor Fitzgerald raised its price target to $75 from $60, maintaining a Neutral rating due to concerns about Marvell’s ability to achieve its 20% data center market share target. Rosenblatt Securities reiterated a Buy rating with a $124 price target, focusing on Marvell’s technological advantages and expanding total addressable market, which has grown to $94 billion. These developments reflect a broad consensus among analysts regarding Marvell’s growth prospects in the custom AI and ASIC markets. The company’s strategic focus on custom solutions for cloud service providers and its leadership in technological innovation are seen as key factors driving these positive outlooks.

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