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Marvell (NASDAQ:MRVL): A New Customer Win Fails to Propel Stock Growth
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Marvell (NASDAQ:MRVL): A New Customer Win Fails to Propel Stock Growth

Story Highlights

Marvell wins the third hyperscale customer for custom computing. However, this news fails to boost MRVL stock.

Free MRVL Analysis

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.

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