Marvell Technology Poised To Expand Leadership In AI Chip Market, Analyst Sees Market Potential Worth Billions
Portfolio Pulse from Nabaparna Bhattacharya
BofA Securities analyst Vivek Arya reaffirmed a Buy rating on Marvell Technology, Inc. (NASDAQ:MRVL) with a price target of $95, highlighting its potential in the AI chip market. Arya anticipates Marvell to showcase its diverse assets at an upcoming event, projecting a significant market opportunity in custom AI accelerators/server ASICs and high-speed Ethernet switches. The analyst expects Marvell to capture over 10% of the custom AI chip market, translating to $2 billion-$3 billion annually by 2026/2027. Additionally, Arya forecasts NVIDIA Corporation (NASDAQ:NVDA) to maintain a 75% share in the total accelerator market, which is expected to reach $180 billion-$200 billion by 2027. MRVL shares rose 2% to $72.29.
April 05, 2024 | 5:36 pm
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POSITIVE IMPACT
Marvell Technology, Inc. is projected to significantly expand its presence in the AI chip market, with a potential to capture over 10% share, translating to $2 billion-$3 billion annually by 2026/2027.
The positive outlook from BofA Securities analyst Vivek Arya, including a Buy rating and a high price target, reflects strong confidence in Marvell's growth potential in the AI chip market. The anticipated showcase of its assets and the projected market share capture in a rapidly growing market segment are likely to positively influence investor sentiment and stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
NVIDIA Corporation is expected to maintain a dominant 75% share in the total accelerator market, which is forecasted to grow significantly to $180 billion-$200 billion by 2027.
NVIDIA's projected maintenance of a 75% share in the rapidly expanding total accelerator market underscores its strong position in the AI and computing sectors. This dominance in a market expected to double in value by 2027 suggests a positive outlook for NVIDIA's stock price in the short term, as it continues to lead in a high-growth area.
CONFIDENCE 80
IMPORTANCE 80
RELEVANCE 80