Semiconductor company Marvell Technology (NASDAQ:MRVL) revealed during its AI event that it has secured a third hyperscale customer to make custom chips for artificial intelligence (AI). However, this new customer win failed to give a significant boost to its stock. MRVL stock closed roughly flat on April 11. Further, it gained merely 0.8% in after-hours trading.
While investors didn’t react strongly to this development, Susquehanna analyst Christopher Rolland sees the new customer win as a positive one as it highlights the company’s growing AI capabilities across custom computing and connectivity. Further, the analyst believes that the third customer is Microsoft (NASDAQ:MSFT). Rolland reiterated a Buy on MRVL stock with a price target of $95, implying 32.81% upside potential from current levels.
Other Takeaways From MRVL’s AI Event
At its AI event on April 11, the company said that it expects AI revenue to exceed $2.5 billion in Fiscal 2026 compared to about $200 million in Fiscal 2023.
In addition, the company revealed that it is investing aggressively to expand its presence in the data center switching market.
Is Marvell Technology a Buy, Sell, or Hold?
Analysts are upbeat about Marvell Technology due to the AI-led growth opportunities and a large addressable market. MRVL stock has 28 Buy and one Hold recommendations for a Strong Buy consensus rating. Analysts’ average price target on MRVL stock is $90.08, implying 25.93% upside potential from current levels.
It’s worth noting that Rolland is a five-star analyst with a success rate of 83% on MRVL stock. However, Vivek Arya of Bank of America Securities is the most accurate analyst covering the stock in a one-year timeframe, according to TipRanks. Copying Arya’s trades on MRVL stock and holding each position for one year could result in 84% of your transactions generating a profit, with an average return of 29.04% per trade.
