Marvell’s Strategic Growth in AI Datacenter Networking and ASIC Business: A Buy Recommendation by Harlan Sur

J.P. Morgan analyst Harlan Sur reiterated a Buy rating on Marvell (MRVL – Research Report) today and set a price target of $130.00.

Harlan Sur has given his Buy rating due to a combination of factors that highlight Marvell’s strategic positioning and growth potential in the AI datacenter networking and ASIC business. Marvell’s recent investor event showcased a robust growth strategy, leveraging advanced technology and a comprehensive platform to capitalize on the expanding market for AI and accelerated compute applications. The company’s total addressable market for datacenter applications is projected to grow significantly, with AI custom chip opportunities alone expected to reach $54 billion by 2028.
Marvell has secured multi-generational design wins with major cloud providers like AWS, Microsoft, and Google, which strengthens its market position and supports a consistent product development cadence. The company’s commitment to innovation is evident in its substantial R&D investments and its differentiated full-service custom development model. Additionally, Marvell’s strong competitive advantage is bolstered by its extensive experience in custom chip development and its strategic partnerships, which are expected to drive its market share in the AI ASIC space to 20% by 2028.

Sur covers the Technology sector, focusing on stocks such as Marvell, Nvidia, and Advanced Micro Devices. According to TipRanks, Sur has an average return of 24.3% and a 68.53% success rate on recommended stocks.

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