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Marvell Technology’s Growth Prospects: Buy Rating Backed by Expanding Data Center Market and Custom Silicon Opportunities

Marvell Technology’s Growth Prospects: Buy Rating Backed by Expanding Data Center Market and Custom Silicon Opportunities

Analyst Quinn Bolton from Needham maintained a Buy rating on Marvell (MRVLResearch Report) and keeping the price target at $85.00.

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Quinn Bolton has given his Buy rating due to a combination of factors that highlight Marvell Technology’s promising growth prospects. The company recently held a Custom AI Investor Event where it announced an increase in its Data Center Total Addressable Market (TAM) for the year 2028, raising it from a previous estimate of $75 billion to $94 billion. This significant increase is driven by strong growth expectations in Custom Silicon and Interconnect, with Switching and Storage also contributing positively.
Furthermore, Marvell’s management introduced a new segment called ‘Custom XPU attach,’ which is anticipated to be a substantial opportunity within the custom silicon space. The company is actively engaged with 18 accelerated custom compute sockets among U.S. and emerging hyperscalers, indicating a robust customer pipeline. Additionally, Marvell is exploring over 50 new opportunities across more than 10 customers, which supports a $75 billion market outlook. These factors collectively underpin Bolton’s confidence in Marvell’s potential, leading to the Buy rating.

In another report released today, Barclays also maintained a Buy rating on the stock with a $80.00 price target.

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