J.P. Morgan analyst Harlan Sur has reiterated their bullish stance on MRVL stock, giving a Buy rating today.
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Harlan Sur has given his Buy rating due to a combination of factors that highlight Marvell’s strong growth potential and strategic positioning. The company is expected to experience significant growth in its diversified datacenter and AI businesses, with the datacenter segment alone accounting for 75% of its revenues and poised for robust growth in the coming years. Marvell’s partnership with Amazon is also a key factor, as it provides solid visibility into future product wins and ongoing technological advancements, particularly in the AI custom ASIC business.
Additionally, Marvell’s optical networking business is performing exceptionally well, with expectations of growth surpassing its custom business in the near future. The company’s strategic moves, such as the $1 billion accelerated stock repurchase program and increased repurchase authorization, underscore management’s confidence in its growth trajectory. Despite these positive developments, Marvell’s stock is currently trading at a discount compared to its AI peers, which presents an attractive investment opportunity given the company’s strong forward growth profile.
In another report released today, Oppenheimer also reiterated a Buy rating on the stock with a $95.00 price target.
MRVL’s price has also changed moderately for the past six months – from $72.760 to $80.090, which is a 10.07% increase.