Marvell’s Strategic Growth and Market Expansion: A Positive Outlook with 42.9% Expected Share Price Return

Marvell (MRVL – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Atif Malik from Citi maintained a Buy rating on the stock and has a $96.00 price target.

Atif Malik has given his Buy rating due to a combination of factors that highlight Marvell’s strategic positioning and growth potential. The company is expected to showcase its capabilities in base die I/O, SerDes IP, and high-bandwidth memory at an upcoming Custom AI Investor Event, which are crucial for engaging with tier-2 cloud providers and AI startups. Additionally, Marvell’s management has indicated ongoing involvement in next-generation projects with a key ASIC customer, projecting growth in custom ASIC sales by 2026 and beyond.
Furthermore, Marvell is anticipated to expand its total addressable market for custom ASICs, potentially surpassing previous estimates of $42.9 billion by 2028. This growth outlook is supported by comparisons to peers like AVGO, which has strong AI sales expectations. The confidence in a significant ramp-up with customer C (MSFT) next year, along with new business engagements, is expected to alleviate concerns about reliance on customer A (AWS) this year. These factors collectively contribute to the positive outlook and the expected share price return of 42.9%.