KeyBanc has upgraded its outlook on Marvell Technology, assigning an overweight rating and increasing its price target from $260 to $385, which implies a 33% upside from the stock's recent closing price. Analyst John Vinh noted that investor meetings have led to a more positive view on Marvell's opportunities in data center networking, a critical area for AI infrastructure.
The firm’s planned acquisition of Celestial AI, which has developed innovative light-based technology to connect AI processors and memory, is expected to set Marvell apart from competitors and enhance its growth potential.
Vinh's optimistic scenario suggests the stock could reach $450, contingent on stronger demand for custom silicon, increased market share, and efficient integration of new acquisitions. Currently, 38 out of 44 analysts covering Marvell recommend buying the stock, reflecting strong market confidence.
Marvell's shares have surged 241% this year and gained an additional 5% in premarket trading on Thursday