Marvell Technology (MRVL) stock rose Thursday after the chipmaker’s chief executive gave Wall Street analysts an upbeat assessment of the company’s prospects.
At an investor conference Wednesday, Chief Executive Matt Murphy provided reassuring guidance. He said the company’s custom chip business should see no revenue gap next year, despite concerns about the status of its business with Amazon’s (AMZN) AWS unit.
Murphy also provided growth rates for Marvell’s data center business next fiscal year that were in line with hyperscaler capex growth at 18% year over year. He said that is a baseline growth rate and the company has opportunities to exceed it. For instance, Murphy highlighted opportunities in scale-up networking connections.
Needham analyst Quinn Bolton reiterated his buy rating on Marvell stock and raised his price target to 95 from 80 after the event.
In afternoon trades on the stock market today, Marvell stock gained nearly 3% to 82.20. With the advance, Marvell neared a buy point of 85.27 in an eight-week consolidation pattern, according to IBD MarketSurge charts.
“Murphy stated the short-term, medium-term, and long-term all look encouraging for the custom silicon business,” Bolton said in a client note. “Additionally, the company now has 20+ custom and XPU attach design wins (vs. 18 at June AI day), including an incremental XPU opportunity at an emerging hyperscaler and multiple XPU attach sockets.”
XPUs are specialized, high-performance processing units, such as AI accelerators.
Marvell Stock Buyback Plan Increased
Oppenheimer analyst Rick Schafer maintained his outperform rating on Marvell stock with a price target of 95.
“Counter to bearish claims to the contrary, management sees MRVL’s five-year strategic partnership with AWS intact,” Schafer said in a client note. “MRVL continues to develop/deliver multigenerational custom-AI silicon to AWS, we believe including Trainium2 as well as future Trainium3 and Trainium4. Management highlighted not seeing any ‘holes’ in custom AI accelerator revenues in CY26.”
Deutsche Bank analyst Ross Seymore kept his buy rating on Marvell stock and upped his price target to 90 from 80.
“MRVL’s CEO expressed significant optimism regarding the continued growth potential of the company across the vast majority of its segments,” Seymore said in a client note.
Also Wednesday, Marvell announced an additional $5 billion stock repurchase authorization.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Will Smart Glasses Replace Smartphones? Meta, Apple, Google Eye New Battleground.
Nvidia Stock Weakens As AI Chip Stocks Struggle
Micron Stock Slides Despite Flurry Of Price-Target Hikes After Report
Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens