Marvell (MRVL – Research Report), the Technology sector company, was revisited by a Wall Street analyst yesterday. Analyst Vivek Arya from Bank of America Securities reiterated a Buy rating on the stock and has a $120.00 price target.
Vivek Arya has given his Buy rating due to a combination of factors that highlight Marvell’s strong position in the AI sector. Firstly, Marvell has secured a significant win with Amazon for the next-generation 3nm AI program, which is expected to drive substantial growth through 2026. Additionally, Marvell’s potential AI custom total addressable market is projected to exceed $8 billion by 2028, surpassing current consensus estimates.
Moreover, Marvell is recognized as a leading AI vendor alongside industry giants like NVIDIA and Broadcom, thanks to its extensive intellectual property across various domains such as compute, networking, optics, and storage. Upcoming industry events and the Analyst Day are anticipated to serve as positive catalysts for the stock. Despite some risks related to AI market sentiment and potential gross margin pressures, the company’s strong engagement in AI programs and its growth trajectory with major clients like Amazon and Microsoft support the Buy rating.
According to TipRanks, Arya is a 5-star analyst with an average return of 13.6% and a 54.00% success rate. Arya covers the Technology sector, focusing on stocks such as Nvidia, Marvell, and Microchip.
In another report released today, KeyBanc also maintained a Buy rating on the stock with a $115.00 price target.
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