KeyBanc turns more constructive on Marvell, citing accelerating AI data center networking demand and long-term upside from its Celestial AI acquisition.
- KeyBanc raised its price target on Marvell to $385 from $260, maintaining an Overweight rating.
- The firm said investor meetings left it more constructive on Marvell’s AI infrastructure positioning.
- Marvell’s planned acquisition of Celestial AI is also seen as a potential long-term differentiator in high-performance computing.
Marvell Technology Inc (MRVL) shares surged nearly 14% on Thursday. The stock later trimmed some of the gains and ended the session 7.27% higher. In after-hours trading, the MRVL stock added another 0.5%.
During the day, KeyBanc reiterated a bullish stance on Marvell, highlighting its positioning in AI infrastructure and data center networking.
MRVL Target Raised By KeyBanc
KeyBanc retained an Overweight rating on Marvell and raised the firm’s price target to $385 from $260, implying 26% upside from Thursday’s close. The firm said recent investor meetings with Marvell left it more constructive on the data center networking opportunity.
KeyBanc added that, given structural shifts in data centers, networking is expected to become a more important focus for investors, as it is seen as more durable compared to custom XPUs, despite visibility toward $10 billion by FY29, where long-term sustainability appears less clear, according to TheFly.
Marvell is expected to benefit from its efforts to provide critical infrastructure for the artificial intelligence boom, which KeyBanc said makes it a strong addition to investor portfolios. The firm emphasized AI networking as a central theme in Marvell’s growth outlook.
MRVL Bull Case Tied To Celestial AI
Marvell’s planned acquisition of semiconductor firm Celestial AI, announced late last year, is expected to help differentiate the company from peers. Celestial AI’s “Photonic Fabric” technology connects AI processors and memory using light instead of traditional copper wiring, aiming to improve speed and handle higher memory loads for large AI applications, according to a CNBC report.
MRVL Stock: What Retail Traders Feel
On Stocktwits, retail sentiment for MRVL was ‘neutral,’ unchanged in the past 24 hours.
Over the past 30 days, message volume around MRVL stock has surged nearly 420%, while its retail watcher base jumped almost 25% in the same period.
KeyBanc’s view aligns with broader Wall Street sentiment. Koyfin data shows 38 of the 44 analysts covering MRVL rate it a ‘Buy’ or ‘Strong Buy,’ while five rate it ‘Hold’ and one rates it ‘Strong Sell.’
The MRVL stock has gained nearly 265% so far this year.
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