MRVL Stock Has Gained Over 7% In Last Five Sessions As Marvell Technology's New Chip Boosts AI Server Performance: Here's What Technical Analysis Says

Shares of Marvell Technology Inc MRVL have risen by 7.04% over the last five trading sessions as the semiconductor manufacturer said that its XPU chip with a new update accelerates the performance of AI servers. Technical analysis of daily moving averages indicate a strong bullish uptrend.

What Happened: Chipmaker Marvell in a press release dated Jan. 6 said that its chip called the ‘Marvell AI accelerator’ or XPU, when integrated Co-Packaged Optics (CPO) enhances AI server performance.

According to the press release, by leveraging integrated optics with XPUs, AI servers can achieve significantly improved connectivity. This translates to 100 times greater reach and faster data transfer rates between XPUs, enabling seamless communication across multiple racks. It also minimizes latency and power consumption, paving the way for highly scalable and efficient AI systems.

Apart from this, Marvell's CEO Matt Murphy during its third-quarter earnings call said that they expect a 26% growth in the topline in fiscal 2025 on an annual basis.

"The exceptional performance in the third quarter, and our strong forecast for the fourth quarter, are primarily driven by our custom AI silicon programs, which are now in volume production, further augmented by robust ongoing demand from cloud customers for our market-leading interconnect products.," Murphy added.

Why It Matters: Shares of Marvell have risen by 89.87% in 2024, whereas, the Invesco QQQ Trust ETF QQQ, mirrors the Nasdaq 100, rose 26.99% in the same period, according to Benzinga Pro.

Over the last six months, the shares gained 60.12%, outperforming QQQ which just rose 3.52% in the same period.

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Despite Wednesday’s 0.56% fall to $117.57 apiece during after-hours technical analysis of daily moving averages shows strong support for the stock.

Marvell’s shares were above its eight, 20, 50, and 200-day simple moving averages, suggesting a bullish uptrend. The 20-day moving average price was $113.87 apiece, whereas the 50-day average stood at $101.27. The 200-day moving average was at $78.20.

On the other hand, the relative strength index of 59.80 suggested that the stock could be moderately overbought but still in the neutral zone.

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According to Benzinga, MRVL has a consensus price target of $111.06 per share based on the ratings of 33 analysts. The highest price target out of all the analysts tracked by Benzinga is $149 apiece issued by Craig-Hallum as of Jan. 6, 2025. The lowest target price is $75 per share issued by Barclays in Jan. 16, 2024.

The average price target between Craig-Hallum, Stifel, and Morgan Stanley imply 13.12% upside for MRVL.

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Courtesy of Marvell Technology, Inc.