Marvell Technology Inc MRVL shares are trading higher by some 7% to $118.23 over the trailing week. JPMorgan analyst Harlan Sur this week provided an optimistic outlook for the company, highlighting the company's strong momentum in AI-driven growth.

Marvell also unveiled its custom XPU architecture, integrating co-packaged optics to enhance AI server scalability with superior data transmission reach and energy efficiency.

What To Know: Sur highlighted that Marvell is set to surpass its $2.5 billion AI revenue target for CY25, fueled by robust demand for optical and copper networking products and AI ASIC programs with Amazon and Google.

Read Also: LA Wildfire Damages Could Top $52 Billion As California Faces Property Insurance Crisis

The company is also expanding into scale-up networking with advanced solutions like active electrical cables, co-packaged optics and linear pluggable optics.

Sur noted Marvell's partnership with Amazon remained solid, with expectations of sustained multi-generational product wins. Despite competition from Amazon's 3nm AI compute ASIC program, Marvell anticipated no revenue disruptions through CY26, projecting continued growth.

Sur also described the company's $8 billion AI Custom ASIC revenue target for CY28 as conservative given the market's rapid expansion.

Read Also: 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

Is MRVL A Good Stock To Buy?

An investor can make a few decisions when deciding whether a stock is a good buy. In addition to valuation metrics and price action which you can find on Benzinga's quote pages — such as Marvell‘s page for example — there are factors like whether or not a company pays a dividend or buys a large portion of its stock each quarter.

These are known as capital allocation programs. Marvell Tech does pay a dividend, which yields 0.31% per year as of the closing price on Jan. 9, 2025. Feel free to search Benzinga's dividend calendar for the next company due to pay a dividend and determine what kind of yield you can earn for holding a share of the company.

For example, if you're looking to earn an annualized return of 18.34%, you'll need to buy a share of Orchid Island Cap by Jan. 31, 2025. Once done, you can expect to receive a nominal payout of $0.12 on Feb. 12, 2025.

Buyback programs are obviously different and highly variable. A company can approve a buyback program and purchase shares as it sees fit over the course of time in which the buyback was authorized. Looking through the latest news on Marvell will often yield whether or not the company has approved a buyback program recently. Buyback programs usually serve as a support for share prices, serving as a backstop for demand.

According to data from Benzinga Pro, MRVL has a 52-week high of $126.12 and a 52-week low of $53.19.

Image courtesy of Pixabay