Shares of Marvell (MRVL) trended higher in pre-market trading on Thursday after top Barclays analyst Thomas O’Malley upgraded the stock to Overweight from Equal Weight (equivalent to Neutral) and raised the price target to $150 from $105. The new price target reflects an upside of 31% from current levels. The upgrade comes as the firm sees improving demand trends, especially in AI-related infrastructure.
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It is worth noting that O’Malley ranks 146 out of more than 12,128 analysts tracked by TipRanks. He has a success rate of 55%, with an average return per rating of 28.50% over a one-year timeframe.
Why Barclays Is Bullish on Marvell Stock
The analyst said demand for optical components used in AI data centers is picking up. Industry checks suggest optical ports could double in 2026 and double again in 2027. Based on this, Barclays expects Marvell’s optical business to grow about 90% over the next two years. Even with some share going to Broadcom (AVGO), overall demand remains strong.
Barclays also tested a more cautious case to understand the downside risk. In this scenario, the firm removed contributions from Microsoft (MSFT), assumed no growth from Amazon (AMZN), and used lower expectations for AI demand. Even under these assumptions, Marvell could still reach about $5 in earnings, showing that the base business remains solid.
That said, the analyst does not expect things to play out this way. Barclays sees better demand ahead, especially from Microsoft, as AI infrastructure builds out. The firm also pointed to recent developments tied to Nvidia (NVDA) and its NVLink platform, which could support higher usage and stronger growth for Marvell.
Is MRVL a Good Stock to Buy?
According to TipRanks, MRVL stock has a Strong Buy consensus rating based on 23 Buys and four Holds assigned in the last three months. At $121.75, the Marvell average share price target implies a 6.38% upside potential.
