Marvell upgraded to Buy at Melius on growth in custom silicon

As previously reported, Melius Research upgraded Marvell (MRVL) to Buy from Hold with a $135 price target. Shares are down 11% from their recent intraday high, notes the analyst, who believes that Marvell’s backlog is growing in custom silicon, with revenues expected to double in calendar year 2027 due to Microsoft’s (MSFT) MAIA chip and several XPU-attach sockets ramping. Custom Microsoft internal silicon design capabilities trail AWS’s (AMZN) Annapurna Labs, potentially creating room for a larger profit pool to accrue to external custom silicon providers like Marvell, the analyst tells investors.