Marvell Technology price target boosted following AI event

Bank of America raised its price target on Marvell Technology to $90 from $80, reiterating a 'Buy' rating, after Marvell's AI event highlighted a stronger custom compute pipeline and new hyperscale wins. Marvell now projects $8 in EPS by 2028, significantly above the Street consensus, driven by an expanding AI data center total addressable market now forecasted at $94 billion by 2028. Marvell shares reacted positively, trading 6.6% higher following the report's release.

Analysis

Bank of America has increased its price target for Marvell Technology (NASDAQ:MRVL) to $90 from $80, reaffirming a 'Buy' rating, subsequent to the company's AI event. This optimistic revision is underpinned by Marvell's robust position in the AI infrastructure market, characterized by a singular data-center focus and extensive intellectual property across compute, XPU, networking, electro-optics, security, and memory/storage. Analysts highlight a strengthened and more diversified custom compute pipeline, new hyperscale customer acquisitions, and considerable long-term earnings potential, projecting $8 in earnings per share by calendar year 2028—a significant 60% premium over the current Street consensus of approximately $5. Marvell's AI event revealed substantial progress, with compute socket wins expanding to 18 across more than 10 customers, a marked increase from three sockets and four customers in the previous year, and includes two new next-generation XPU design wins with emerging hyperscale clients. Management now identifies over 50 custom compute and infrastructure opportunities, representing a potential $75 billion in lifetime revenue. Furthermore, Marvell has revised its AI data center total addressable market (TAM) forecast upwards to $94 billion by 2028 from a prior $75 billion; analysts noted that while this new TAM excludes high-bandwidth memory (which constituted approximately 37% of the accelerated compute TAM in prior estimates), the adjusted market size is still about 60% higher than earlier projections. The market reacted positively to these developments, with Marvell's shares climbing 6.6% to around $75.

Key Decisions for Investors

• Investors may consider Marvell Technology favorably given the positive analyst revision, strong AI event disclosures, and significant projected EPS growth to $8 by 2028, which is substantially above current consensus.
• It is crucial to monitor Marvell's execution in securing and delivering on its expanded custom compute pipeline, particularly the 18 socket wins and new hyperscale engagements, as these are key to achieving the forecasted revenue and earnings.
• While the increased TAM to $94 billion signals a larger market opportunity, investors should note the revised definition excluding high-bandwidth memory when assessing year-over-year growth and market share capture.