Marvell Technology’s stock has been on a tear, and Wall Street is taking notice. The semiconductor company has posted a 111% return over the past six months, with year-to-date gains topping 115%. The stock was trading around recent highs heading into Thursday’s session.
Marvell Technology, Inc., MRVL
TD Cowen analyst Joshua Buchalter doubled his price target on MRVL to $180 from $90 on Thursday, citing ongoing momentum in the optical infrastructure space. He kept his Hold rating in place.
Buchalter was clear-eyed about the run-up. He said the stock’s move may have pulled forward a lot of enthusiasm, setting a higher bar going into Marvell’s earnings call on May 27.
Custom XPU exposure remains a key debate among investors, and TD Cowen does not expect the upcoming earnings call to offer much clarity on that front.
Despite maintaining Hold, TD Cowen revised its broader data center outlook upward. The firm now sees $1.3 trillion in data center silicon spending by 2030, up from a prior estimate of $1.2 trillion.
The upgrade in estimates is tied closely to what Cowen calls a “bifurcation within the infrastructure trade.” The largest accelerator companies have underperformed recently, while optical names like Marvell have traded higher on expectations of coming supply shortages.
Marvell management has guided for more than 50% optics growth over the next two years. That outlook has been a key driver of analyst confidence across the street.
RBC Capital raised its price target on MRVL to $200, maintaining an Outperform rating. The firm pointed to strength in Marvell’s optical business and AWS chip production as key drivers.
BofA Securities also set a $200 target, highlighting the expanding AI networking market.
Marvell recently announced the acquisition of Polariton Technologies, a Swiss company that develops plasmonics-based silicon photonics devices. The deal is expected to boost Marvell’s optical technology portfolio, with a focus on coherent and data center interconnect applications.
The move fits into a broader push by Marvell to position itself in the AI data center supply chain, particularly as demand for high-speed optical interconnects grows.
InvestingPro data currently lists MRVL as overvalued relative to its Fair Value estimate, placing it on the platform’s Most Overvalued list.
Marvell’s earnings are scheduled for May 27. Analysts and investors will be watching closely for updates on the optics business trajectory and any color on custom XPU development.
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