Marvell’s Growth Potential in AI and Data Centers: Buy Rating with $90 Price Objective

In a report released yesterday, Vivek Arya from Bank of America Securities reiterated a Buy rating on Marvell (MRVL – Research Report), with a price target of $90.00.

Vivek Arya has given his Buy rating due to a combination of factors that highlight Marvell’s potential for growth in the AI and data center markets. Arya points out that Marvell has a strong and diverse pipeline, with significant opportunities in custom-compute and XPU segments, which are expected to drive substantial revenue growth. The company has expanded its customer base and increased its number of unique sockets, indicating a robust demand for its products.
Furthermore, Arya notes that Marvell’s total addressable market (TAM) for data centers is projected to grow significantly, reaching $94 billion by 2028, which excludes certain components for a more accurate comparison. This expansion in TAM, combined with Marvell’s strategic positioning and technological advancements, supports Arya’s optimistic earnings per share (EPS) projection of $8 by 2028, which is considerably higher than current market expectations. These factors, along with Marvell’s competitive valuation compared to its peers, underpin Arya’s Buy rating and increased price objective of $90.

Arya covers the Technology sector, focusing on stocks such as Nvidia, Advanced Micro Devices, and Analog Devices. According to TipRanks, Arya has an average return of 15.5% and a 60.69% success rate on recommended stocks.