BofA Sees Marvell's AI Opportunity 5x Bigger, Sets $365 Target
MRVL has more than doubled off its 52-week low of $66.14.
Summary
BofA analyst Vivek Arya hosted Marvell's CEO and CFO at an investor lunch and came away convinced the company's AI opportunity is far larger than management's own estimates. He sees the custom AI chip market reaching $300B by 2030, five to six times Marvell's $55B 2028 sizing, and reiterated a Buy rating with a $365 price target. Arya's math on XPU attach — connectivity and memory chips next to custom processors — suggests a $60-65B market where Marvell could capture $30B at 40-50% share, versus management's guidance of $3-4B in 2028. He also forecasts $12-17B in custom processor sales at 5-7% share, calling the company's sub-$10B 2028 outlook 'very conservative.' The analyst estimates earnings could reach $14/share by calendar 2028, with every extra $1B in sales adding 30-35 cents. Marvell hosts its analyst day on Oct 6, where management may update market sizing and outlook.
At the time of this announcement, MRVL was trading at $236.10 on NASDAQ in the Technology sector, with a market capitalization of approximately $207B. The 52-week trading range was $66.14 to $329.88. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.