Marvell Technology (MRVL) surged 8% in pre-market trading after renewed attention on reports that SoftBank Group (SFTBY) had explored a potential takeover of the chipmaker earlier this year. The deal, reportedly valued between $80 billion and $100 billion, would have been one of the largest in semiconductor history.
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The plan, led by SoftBank founder Masayoshi Son, aimed to combine Marvell with Arm Holdings (ARM), the UK-based chip designer owned by SoftBank. The goal was to use Arm’s technology and Marvell’s chip expertise to strengthen SoftBank’s foothold in the fast-growing AI infrastructure market.
Marvell Gains from AI Momentum and Deal Buzz
The renewed takeover talk has added to optimism about Marvell’s growing role in AI chips. The company makes custom semiconductors used in cloud, networking, and data centers, with big clients such as Amazon (AMZN) and Microsoft (MSFT). Investors see SoftBank’s interest as proof of Marvell’s rising place in the global AI supply chain.
Marvell shares also got a lift last week after Amazon pointed to strong demand for its Trainium AI chips, which use Marvell’s silicon. Amazon CEO Andy Jassy said Trainium2 is now a multibillion-dollar business, up 150% from the last quarter. As a key partner behind Amazon’s AI systems, Marvell could keep gaining from the growth in cloud and data center spending.
Is MRVL a Good Stock to Buy Now?
Currently, Wall Street has a Strong Buy consensus rating on MRVL stock based on 22 Buys and nine Holds. The average Marvell stock price target of $90.62 indicates a 2.45% downside risk from current levels.
