Marvell Technology Group Ltd. (NASDAQ:MRVL) has earned a price target raise to $90 from $80 from Bank of America analysts, who repeated their ‘Buy’ rating following the company’s recent AI event.
“We continue to like Marvell as the rising tide of AI capex can help drive potential upside for one of the few franchises with a singular data-center focus, and with breadth of leading IP across compute, XPU, networking, electro-optics, security, and memory/storage,” the analysts wrote.
The analysts cited a stronger and more diversified custom compute pipeline, newly disclosed hyperscale wins, and significant upside to long-term earnings. They now project $8 in earnings per share (EPS) power by calendar year 2028, 60% above the current Street consensus of about $5.
During the AI event, Marvell revealed it now has 18 compute socket wins across more than 10 customers, up from just three sockets and four customers last year.
This includes two new next-gen XPU design wins with emerging hyperscale players, alongside a growing category of “XPU attach” wins, supporting components like memory poolers, scale-up fabrics, and co-processors.
Management now sees over 50 custom compute and infrastructure opportunities in its pipeline, translating into a potential $75 billion in lifetime revenue.
The company also raised its AI data center total addressable market (TAM) forecast to $94 billion by 2028, up from $75 billion previously.
While the new figure excludes high-bandwidth memory, which was included in prior estimates, the adjusted TAM is still about 60% higher than earlier projections, the analysts noted.
“However, note this is an apples-to-oranges comparison as the new $94 billion excludes high bandwidth memory (approximately 37% of accelerated compute TAM) in custom compute, while the prior $75 billion includes the same,” the analysts wrote.
Shares of Marvell traded 6.6% higher at about $75 following the release of the bank’s report.