Piper Sandler analyst David O’Connor initiated coverage of Marvell Technology (MRVL) with a Buy rating and a price target of $270, citing the company’s data center positioning and a major deal with Google as the driving factors.
MRVL stock was trading around $231.69 at the time of the note.
Marvell Technology, Inc., MRVL
O’Connor holds a 4-star analyst rating and also issued Buy ratings on Nvidia, AMD, Broadcom, and Arm Holdings in the same coverage sweep. He assigned Hold ratings to Qualcomm and Intel.
The analyst pointed to Marvell’s role as a major data center component supplier, holding roughly a 10% market share. The company also holds dominant positions in digital signal processors and custom connectivity solutions.
O’Connor highlighted the company’s hyperscaler relationships and its Celestial AI acquisition as key drivers for growth in custom AI chips and co-packaged optics.
A central piece of the bullish case is the $120 billion Google agreement. TPU programs tied to the deal are expected to kick off in Fiscal 2029, with the agreement projected to generate roughly $18 billion in annual revenue once fully ramped.
O’Connor noted that Marvell’s core XPU customers are believed to include Amazon’s AWS Trainium and Microsoft’s Maia accelerator chip programs. He flagged the potential to supply custom XPUs to other hyperscalers as an underappreciated opportunity.
Looking ahead, the analyst expects Marvell’s October 6 analyst day to act as a near-term catalyst, where the company is expected to lay out its long-term outlook.
O’Connor projects EPS to grow at around a 45% compound annual growth rate, reaching $19 by 2030, with revenue hitting $45 billion.
Wall Street holds a Strong Buy consensus on MRVL, based on 22 Buy ratings and five Hold ratings. The average price target sits at $301.04, implying about 33% upside from current levels.
The stock has climbed 167% year-to-date, reflecting strong investor appetite for AI-driven chip exposure.
On the valuation side, GuruFocus flags the stock as trading at a 95% premium to its GF Value of $118.81, with a P/E ratio of 76.47x compared to its 5-year median of 38.25x.
Insider activity has leaned toward selling, with $15.3 million in insider sell value recorded over the past three months. Of the 14 gurus currently holding positions, eight have added to their stakes while six have trimmed.
The company’s GF Score stands at 76 out of 100, with a perfect 10/10 for growth but a 1/10 for valuation.
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