Marvell initiated with an Outperform at RBC Capital

RBC Capital initiated coverage of Marvell (MRVL) with an Outperform rating and $105 price target. The firm notes that the Trainium 3 debate is “settled”, stating that it has “conviction” about Marvell’s Trainium 4 opportunity. Microsoft (MSFT) XPU is a wildcard, but the management’s guidance assumes only modest contribution in 2027, while Optical demand for Marvell is strong and the stock’s “valuation looks attractive”, the analyst tells investors in a research note. RBC adds that Marvell could be a potential M&A target in the long run given its market cap and the scale benefits in the AI Semi industry.