I'm LongbridgeAI, I can summarize articles.Seaport Research analyst Jay Goldberg initiated coverage of Marvell Technology, ON Semiconductor, and Semtech with Buy ratings, citing significant opportunities in AI data-center infrastructure. Price targets were set at $270 for Marvell, $100 for ON Semiconductor, and $200 for Semtech. The bullish outlook is driven by demand for connectivity, custom silicon, power systems, and optical solutions, though risks regarding margins and the volatile nature of custom silicon were noted.
Seaport Research analyst Jay Goldberg started his coverage of Marvell Technology (MRVL), ON Semiconductor (ON), and Semtech (SMTC) with Buy ratings. Goldberg cited big opportunities for these three companies tied to AI data-center infrastructure. He set price targets of $270 for Marvell, $100 for ON Semiconductor, and $200 for Semtech. These targets imply upside of 3.5% for MRVL, 34% for ON, and 18% for SMTC from current levels.
Why is Seaport Bullish on MRVL
Marvell is the largest of the three companies by market value, with Goldberg pointing to more demand for data-center connectivity. He sees considerable growth ahead as Marvell's interconnect and custom silicon businesses "enjoy their time in the AI sun." However, Goldberg noted that while Marvell has significant IP and expertise in the custom silicon market and the tools to compete, custom silicon can be a "fickle business."
Goldberg is also closely watching Marvell's margins. The company expects a non-GAAP gross margin of 58.25% to 59.25% for the current quarter, compared with 59.4% a year ago. He expects most of the operating leverage to come from managing operating expenses rather than meaningful expansion in gross margins.
Goldberg's Views on Onsemi and Semtech
Moving on to Onsemi, Goldberg sees potential from the adoption of 800-volt power systems in data-center projects expected in 2027 and 2028. The company could also benefit from improving demand across its industrial and automotive markets.
He also views Onsemi's Synaptics deal more positively than the broader Street, saying the transaction could expand the company's addressable market and create potential gross-margin synergies over time.
Meanwhile, Goldberg expects AI-related optical demand to provide another growth driver for Semtech in 2027 and 2028. He said Semtech has reinvented itself by moving away from its troubled past in connectivity and focusing on data-center optical solutions. The analyst believes this shift positions the company to benefit from growing AI-related optical demand over the next two years.
Goldberg's Ranking on TipRanks
Fish is a three-star-rated analyst on TipRanks, ranking #5,087 out of more than 12,000 analysts tracked. He has a 38% success rate, with an average return of 6.30% per rating.