On Monday, Bank of America’s top-rated analyst Vivek Arya reiterated his bullish stance on chip stocks including Nvidia (NASDAQ: NVDA), AMD (NASDAQ: AMD), Marvell Technology (NASDAQ: MRVL), Broadcom (NASDAQ: AVGO), and Credo Technology (NASDAQ: CRDO).
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The analyst expects these chip stocks could benefit from a rise in spending on cloud computing and has forecasted it to rise by 7.5% in 2023, a slower uptick from 2022, but still up year-over-year.
Arya anticipates the expenditure on cloud computing to be $183 billion in 2023 versus $170 billion this year.
The analyst commented, “Near-term trends are volatile, but prior downturns eventually led to multiple years of 30%+ annual spending trends.”
Is Marvell a Good Stock to Buy?
One of the chip stocks listed by Arya, Marvell is also considered a Strong Buy by other analysts besides Arya. The Strong Buy consensus rating is based on 17 Buys and two Holds.
The average price forecast for MRVL stock is $72.21 implying an upside potential of 62.8% at current levels.
