Marvell Tech Set for Major Growth with AI Accelerators for Amazon, Google, and Potential Microsoft Deal: Analysts
Portfolio Pulse from Anusuya Lahiri
Marvell Technology Inc (NASDAQ:MRVL) is poised for significant growth with its AI accelerators for Amazon, Google, and a potential deal with Microsoft, according to analysts. Needham analyst Quinn Bolton reiterated a Buy rating with a price target of $95, highlighting Marvell's growth opportunities in custom computing, cloud optics, and more. Marvell aims for AI revenue to exceed $2.5 billion by fiscal 2026 and targets a 20% share of the Data Center TAM, expected to exceed $75 billion by 2028. The company announced major deals with Amazon and Google and is developing an AI accelerator for a potential deal with Microsoft, which could be larger than the Amazon and Google engagements combined. Rosenblatt analyst Hans Mosesmann also maintained a Buy rating with a $100 price target, noting Marvell's competitive roadmap in switching and interconnect markets. Marvell stock gained 80% in the last 12 months and can be accessed through ETFs like IDGT and SPRX.
April 12, 2024 | 4:23 pm
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POSITIVE IMPACT
Amazon is ramping up an AI training accelerator with Marvell, indicating a deepening partnership between the two companies.
Amazon's collaboration with Marvell for an AI training accelerator suggests a positive outlook for both companies. This partnership could enhance Amazon's AI capabilities and drive demand for Marvell's products, potentially boosting both companies' stock prices in the short term.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Google is ramping an Arm CPU with Marvell, likely enhancing its computing capabilities and strengthening the partnership.
Google's decision to ramp an Arm CPU with Marvell indicates a strategic move to enhance its computing capabilities. This partnership is likely to have a positive impact on both companies' stock prices in the short term by showcasing Google's commitment to advancing its technology infrastructure.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 80
POSITIVE IMPACT
Investors can gain exposure to Marvell's stock through the iShares U.S. Digital Infrastructure And Real Estate ETF.
The mention of IDGT as a means to gain exposure to Marvell's stock suggests a potential indirect impact on the ETF's performance. As Marvell grows and its stock price potentially increases, IDGT could see a positive impact due to its holdings in Marvell.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Marvell Technology is set for significant growth with AI accelerators for major tech companies, aiming for over $2.5 billion in AI revenue by fiscal 2026.
The positive outlook from analysts, including reiterated Buy ratings and ambitious revenue targets, suggests strong growth potential. The strategic partnerships with major tech companies for AI accelerators indicate a robust demand for Marvell's products, likely leading to a positive short-term impact on its stock price.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100
POSITIVE IMPACT
Microsoft is potentially developing an AI accelerator with Marvell, which could be a significant engagement surpassing those with Amazon and Google.
The potential development of an AI accelerator with Marvell could be a game-changer for Microsoft, indicating a major engagement that could surpass its tech peers. This move is likely to positively impact Microsoft's stock price in the short term by highlighting its investment in AI technology.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Spear Alpha ETF offers another avenue for investors to access Marvell's stock, potentially benefiting from its growth.
SPRX's inclusion of Marvell's stock as part of its holdings suggests that the ETF could benefit indirectly from Marvell's growth. As Marvell's stock price potentially rises, SPRX could experience a positive impact, making it an attractive option for investors looking to capitalize on Marvell's success.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50