Marvell Stock Jumps After AI Event Shows ‘Stronger’ Growth Pipeline, BofA Says

Shares of Marvell Technology (MRVL) popped Wednesday as analysts said the chipmaker’s Custom AI event revealed an expanded growth opportunity.

Bank of America raised its price target to $90 from $80 following the Tuesday event, which it said highlighted a “[s]tronger, more diverse pipeline” that could help Marvell stock “catch up to its AI peers.” Marvell shares rose nearly 7% in recent trading to about $75. 

At the event, Marvell said its total addressable data-center market is expected to reach $94 billion by 2028, up from its prior estimate of $75 billion, according to a transcript made available by AlphaSense. The company also announced two new clients for its next-generation AI accelerator chips, on top of three existing major customers. BofA said Big Tech investing heavily in AI infrastructure is a “rising tide” that can drive potential upside for Marvell. 

Deutsche Bank analysts said Marvell is “one of the very few companies capable of addressing the rapidly growing custom data center silicon market.” The bank holds a price target of $85 for Marvell stock. Meanwhile, Citi and Morgan Stanley maintained targets of $96 and $73, respectively.

Despite Wednesday’s share gains, Marvell stock has lost roughly a third of its value this year after hitting a record high in January. Last month, Marvell offered a narrowed quarterly revenue forecast that failed to impress investors amid an uncertain macroenvironment, and a decision then to delay its investor day raised additional concerns.