I'm LongbridgeAI, I can summarize articles.Piper Sandler analyst David O'Connor initiated coverage of Marvell Technology (MRVL) with a Buy rating and a $270 price target, citing strong data center opportunities and a major Google deal. The analyst highlights Marvell's dominant position in DSPs and custom connectivity, expecting the Google agreement to generate ~$18 billion in annual revenue. Wall Street consensus is Strong Buy with an average target of $301.04.
Piper Sandler analyst David O'Connor initiated coverage of Marvell Technology (MRVL) with a Buy rating and a price target of $270. The 4-star analyst cited the chip company's data center opportunity and the recent Google (GOOGL) deal, among other positives for his bullish stance.
O'Connor also assigned Buy ratings to Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Arm Holdings (ARM), while having a Hold rating on Qualcomm (QCOM) and Intel (INTC).
Piper Sandler Highlights Marvell's Strengths
O'Connor highlighted that Marvell is a major data-center component supplier with about a 10% market share and dominant positions in DSPs (digital signal processors) and custom connectivity. The analyst added that the company's hyperscaler relationships and Celestial AI acquisition support growth in custom AI chips and co-packaged optics.
Additionally, O'Connor is optimistic about the $120 billion Google agreement, with TPU (Tensor Processing Unit) programs expected to begin in Fiscal 2029. He noted that Marvell's core XPU customers are believed to be Amazon's (AMZN) AWS Trainium and Microsoft's (MSFT) Maia accelerator chip programs. However, O'Connor thinks that the underappreciated opportunity may be supplying XPU custom to hyperscalers. He added that the Google deal highlights this opportunity and is expected to translate into about $18 billion in annual revenue once fully ramped.
Looking ahead, the analyst expects Marvell's October 6 analyst day to offer long-term outlook and serve as a catalyst. O'Connor expects EPS (earnings per share) to grow at about a 45% CAGR (compound annual growth rate), to $19 by 2030, with revenue reaching $45 billion.
Is MRVL Stock a Buy, Sell, or Hold?
Given strong demand tailwinds, Wall Street has a Strong Buy consensus rating on Marvell Technology stock based on 22 Buys and five Holds. The average MRVL stock price target of $301.04 indicates about 33% upside potential. Shares have rallied 167% year-to-date.