Semiconductor company Marvell Technology (NASDAQ:MRVL) is benefitting from the stellar demand for its AI (Artificial Intelligence)-led products and solutions. However, the strength of the AI revenue was not enough to boost its stock price. Despite reporting better-than-expected Q3 financials on November 30, Marvell stock is down about 4.6% in after-hours, due to weakness in other businesses, namely carrier infrastructure and enterprise networking end markets.
MRVL’s management stated that the challenging macroeconomic environment will weigh on demand, resulting in revenue declines in the carrier infrastructure and enterprise networking segments in Q4 and Q1 of Fiscal 2025.
Nevertheless, the company’s management remains upbeat and expects AI revenue to grow significantly faster. With this background, let’s look at the Street’s projection for MRVL stock.
What is the Forecast for MRVL Stock?
Despite challenges in carrier infrastructure and enterprise networking, MRVL stock remains a Wall Street favorite. The company strategically invested in high ROI opportunities, which bodes well for long-term growth. Further, it boasts a broad product portfolio to power accelerated computing infrastructure, which will drive future demand and revenues. In addition, efficiency enhancements to cut operating expenses further support its case.
Notably, 13 analysts cover Marvell stock, and all recommend a Buy. Further, analysts’ average price target of $66.43 implies 19.2% upside potential from current levels.
Bottom Line
Wall Street analysts are bullish about MRVL’s prospects, expecting the company to benefit from solid AI-driven demand. However, the challenging macroeconomic environment may hurt end-market demand and could limit the upside potential of its stock in the short term.
