MRVL Surges 12% Pre-Market: Wall Street Upgrades Stock As AI And Cloud Chips Demand Shines

• Cody Acree said Marvell’s expanding set of revenue drivers should outweigh concerns about individual projects. 
• BofA said the earnings call increased confidence that Marvell is well-positioned in AI-related optical connectivity technologies.
• Morgan Stanley increased its price target to $103 from $95 while keeping an ‘Equal Weight’ rating.

Wall Street is exuding confidence about Marvell Technology Inc. (MRVL), with analysts upgrading the stock and raising price targets, highlighting its exposure to artificial intelligence infrastructure and cloud computing demand.

The company reported fourth-quarter (Q4) revenue of $2.22 billion and adjusted earnings per share (EPS) of $0.80, both surpassing the analysts’ consensus estimates of $2.2 billion and $0.79, respectively, according to Fiscal AI data.   

Benchmark Issues Strong Upgrade

Cody Acree at Benchmark upgraded Marvell shares to ‘Buy’ from ‘Hold’ and assigned a $130 price target, according to TheFly. Acree noted that although the company may share design responsibilities for Amazon.com Inc.’s (AMZN) upcoming Trainium 3 chip program with another partner, the potential impact is limited compared with the broader growth opportunities ahead.

According to the analyst, Marvell’s expanding set of revenue drivers should outweigh concerns about individual projects. Marvell stock traded over 11% in Friday’s premarket. 

On Stocktwits, retail sentiment around the stock changed to ‘extremely bullish’ from ‘bullish’ territory the previous day. Message volume changed to ‘extremely high’ from ‘normal’ levels in 24 hours. 

Bank Of America Sees AI Networking Upside

BofA also upgraded the stock to ‘Buy’ from ‘Neutral’ and lifting the price target to $110 from $90. The firm said management’s commentary during the earnings call increased confidence that Marvell is well-positioned in AI-related optical connectivity technologies used inside modern data centers.

BofA highlighted opportunities tied to a potential custom semiconductor program with Microsoft Corp. (MSFT) and suggested that Marvell could be moving past a transition phase related to processor changes at Amazon.

Citi And Morgan Stanley Raise Their Price Targets

Citigroup raised its price target on Marvell to $118 from $113 while maintaining a ‘Buy’ rating. The firm pointed to rising spending by hyperscale cloud providers and increased demand for AI networking equipment. 

Morgan Stanley increased its price target to $103 from $95 while keeping an ‘Equal Weight’ rating on the stock. Meanwhile, analyst Leon Chen of KGI Securities also upgraded the stock to ‘Outperform’ from ‘Neutral’ and set a $110 price target.

MRVL stock has gained over 4% in the last 12 months. 

Also See: IBG Stock Surges 70% Pre-Market Today: Retail Eyes Its ‘Nano Float’ And Upcoming BlockFuel Energy Merger

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