Marvell (MRVL) PT Raised to $135 at Benchmark
Benchmark analyst Cody Acree raised the price target on Marvell (NASDAQ: MRVL) to $135.00 (from $115.00) while maintaining a Buy rating.
The analyst commented: "Last night, Marvell delivered a solid 3Q print and gave an equally encouraging outlook, with the stock reacting well in the after-market, as the company’s results were delivered
into a market that, following what we heard from Nvidia, had limited expectations of upside. We believe Marvell offers investors a unique, non-Nvidia, alternative to gain leverage to the AI/Data Center trade, with 73% of its revenue currently derived directly from the AI and Data Center markets, which grew 98% annually, and 25% sequentially in 3Q. Most specifically, Marvell is one of only two custom silicon suppliers that provide NVDA GPU competitive accelerators to three of the industry’s largest hyperscale data center companies, with Amazon and Google having contracted Marvell to co-develop custom accelerators uniquely tailored to serve their specific AI workloads. After years of engagement, development, and qualification, these processors are currently ramping with volume production revenue, which when combined with its strong ramp in Optical Connectivity, Marvell is said to be on pace to “well-exceed” its FY25 and FY26 targets for AI to earn $1.5 billion and $2.5 billion, respectively by “hundreds of millions of dollars”."