Marvell Technology Has 'Sustainable Growth Strategy,' Analysts Say

Shares of Marvell Technology Inc. MRVL rallied in early trading on Wednesday, after the company hosted its Custom AI Investor Event on Tuesday.

Needham analyst Quinn Bolton maintained a Buy rating and price target of $85.
JPMorgan analyst Harlan Sur reiterated an Overweight rating and price target of $130.

Check out other analyst stock ratings.

Needham: Marvell indicated that it estimates its Data Center TAM (total addressable market) at $94 billion in 2028. That’s up from its previous projection of $75 billion. All four subsegments of the division are expected to contribute to this growth, Bolton said in a note.

Marvell introduced ‘Custom XPU attach', which represents "an increasingly strategic portion of its Data Center TAM," growing at a CAGR (compounded annual growth rate) of 90% from 2023-2028, "significantly outpacing the 47% CAGR of the Custom XPU segment. "We see Custom XPU attach as a particularly rich opportunity for MRVL given its networking and processing background," he further wrote.

JPMorgan: Marvell presented a "compelling and sustainable growth strategy for its AI datacenter networking/ASIC business," Sur said. With new design wins confirmed, the company now has design wins for 18 multi-generational sockets, "which should help drive its ASIC AI silicon market share to 20% by 2028," he added.

"The team is driving strong product innovation and investing in sustaining its leading-edge technology, given its strong R&D scale ($2B+ per year)," the analyst wrote. If Marvell executes well on its datacenter growth strategy and captures 20% of the datacenter TAM opportunity by 2028, there could be "significant upside' to its stock, he further stated.

Price Action: Shares of Marvell Technology had risen by 8.36% to $75.84 at the time of publication on Wednesday.

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