Key Takeaways
Marvell Technology (MRVL) shares surged 8.2 percent to a record high Wednesday after Bank of America and Goldman Sachs raised their price targets, citing strong demand for the company’s artificial intelligence chips.
"Marvell is cementing itself at the core of hyperscale AI infrastructure," Motley Fool analyst Jason Moser wrote in April, a sentiment echoed by Bank of America analysts who now see the stock as a "top pick."
Bank of America increased its price target to $200 from a previous $125, implying 12.4 percent upside from the closing price. Goldman Sachs, while maintaining a Neutral rating, lifted its 12-month target to $125 from $100. The stock closed at $177.95, marking its 12th record close of 2026.
The bullish analyst notes come as rival chipmaker Advanced Micro Devices (AMD) disclosed an $11.6 million stake in the company, adding to investor confidence ahead of Marvell’s May 27 earnings report.
The BofA analysts cited broad demand for Marvell’s custom chips and growth in its optical networking unit. The firm has existing partnerships to supply custom silicon for Amazon and Microsoft’s Azure cloud business. Goldman’s note pointed to a potential future partnership with Google and higher capital spending by hyperscalers as drivers for the datacenter business.
The rally extends a breakout for the semiconductor company, which has seen its stock price climb more than 126 percent from a low in early March. The move was further bolstered Tuesday when AMD reported it now owns 65,516 shares of Marvell, a move that suggests a potentially deeper partnership between the two chipmakers.
The dueling price target hikes underscore the intense investor appetite for companies providing the hardware for the AI boom, a category long dominated by Nvidia (NVDA). Investors will now watch Marvell's earnings on May 27 to see if the company's guidance can justify the stock's sharp ascent.
This article is for informational purposes only and does not constitute investment advice.
