Marvell Technology, Inc. (NASDAQ:MRVL) is one of the AI Stocks in Focus on Wall Street. On November 20, Raymond James assumed coverage on the stock with a Strong Buy rating and a price target of $121.00. The firm is bullish on the stock as it sees Marvell well-positioned for AI-driven demand and advanced packaging trends.
While analysts acknowledge how Marvell faces skepticism being a secondary custom silicon supplier, it believes it has the right ingredients due to its application specific integrated circuit business and optics segment.
“Marvell’s shares have traded 25–30× next-twelve-month (NTM) P/E after re-rating lower earlier this year (the 3-year and 5-year average is ~30×), and applying today’s 26× multiple to our $4.67 FY28/CY27 EPS estimate yields a price target of $121.”
The firm’s model reflects content share declines to 10% at Amazon because of more IP/design moves to Alchip and Amazon’s Annapurna internal design team. Moreover, it models Trainium/Inferencia chips totaling 1.5 million in CY25, increasing to 2 million in CY26 and 2.8 million in CY27.
It also assumes a similar 10% content ratio for Microsoft’s Maia as it “ramps to meaningful production from ~75K in CY25 to 382K in CY26 and 620K chips in CY27.”
The expected growth in shipments will likely drive custom compute sales to $1.4B (-6% y/y) in CY26 and $2.2B (+50% y/y) in CY27; added the analysts. Meanwhile, optics is expected to climb $4.4B and $5.6B in CY26 and CY27, growing 40% and 26%.
“Marvell is well positioned to thrive when advanced packaging becomes the market model with chiplets and massive amounts of interconnect.”
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 AI Stocks in Focus on Wall Street and 10 Hot AI Stocks to Keep on Your Radar Disclosure: None.
