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Investing.com - Piper Sandler has reiterated an Overweight rating on Marvell (NASDAQ:MRVL) with a price target of $85.00, citing the company’s XPU growth strategy. The stock, currently trading at $76.77, has shown strong momentum with a 9.4% return over the past year, according to InvestingPro data.
The research firm expressed confidence that Marvell’s XPU strategy remains on track and is positioned to ramp up significantly in the near to mid-term timeframe.
Piper Sandler views Marvell as one of only two companies possessing the necessary intellectual property to service the leading-edge XPU market for hyperscaler customers.
The firm believes this market will continue to show resilience, supported by strong spending from hyperscalers.
The rating reaffirmation followed management meetings with Marvell that Piper Sandler hosted last week, which reinforced the firm’s positive outlook on the company’s growth trajectory.
In other recent news, Marvell Technology has garnered attention with a series of developments in its AI and data center initiatives. BofA Securities raised its price target for Marvell to $90, citing the company’s expanded pipeline of 18 unique sockets across over 10 customers, up from just 3 sockets and 4 customers last year. Meanwhile, TD Cowen maintained its $70 price target, expressing optimism about Marvell’s potential in the AI market despite competitive pressures. Piper Sandler also reiterated its $85 price target, highlighting Marvell’s strong positioning in the data center market and its proprietary technology. Wolfe Research maintained an Outperform rating with a $90 price target, noting Marvell’s significant revenue potential in the AI sector by 2028.
In a strategic move, Marvell announced a collaboration with Empower Semiconductor to develop integrated power solutions for its custom silicon platforms, targeting the growing power demands of AI and cloud data centers. The partnership aims to enhance efficiency by moving voltage regulation closer to the processors. Despite these positive strides, some analysts, like Wolfe Research, mentioned ongoing investor concerns about the sustainability of Marvell’s project revenue. However, Marvell remains confident in its growth trajectory and future projects with existing customers.
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