Marvell Technology price target raised as BofA notes AI demand trends By Investing.com

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<span>© Reuters. Marvell Technology (MRVL) price target raised as BofA notes AI demand trends</span><br />
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<p>BofA analysts raised the price target for Marvell Technology (NASDAQ:) to $80 per share from $68 in a note Thursday, based on the custom AI chip ramp.</p>
<p>The price target increase comes after the investment bank met with the company’s management team at the CES tradeshow in Las Vegas this week. They noted solid cloud AI demand trends at the company. </p>
<p>“Our discussions with NVDA and MRVL were very positive, with both vendors (along with AVGO, AMD) supplying critical compute and networking parts to cloud customers,” said BofA. “The MRVL discussion indicated their custom AI chip ramp could be 1.5-2x the $250mn/$450mn we assumed prior for CY24/25E.”</p>
<p>One of the takeaways from the meeting was that as custom silicon and accelerator demand drives market growth, MRVL sees it as feasible that custom silicon becomes a much larger part of the business. </p>
<p>Furthermore, it was initially assumed CY24 AI revenue would be $800 million, with the majority being optics, but they now see it exceeding previous targets “as custom silicon gains traction (though still more optics weighted).”</p>
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