Marvell Technology received a bullish endorsement from Rosenblatt, which initiated coverage with a buy recommendation and raised its price target to $300 from $240.
Analyst Sajal Dogra designated Marvell as a core investment idea, citing strong demand for custom chip accelerators in AI architectures. The new target is based on a 29x multiple of estimated earnings for fiscal year 2029, with projected earnings power of $10.50 per share.
The upgrade follows expectations of sequential growth exceeding 25% in optical interconnections for the second quarter, supported by recent results from Lumentum, Ciena, and MACOM. Marvell is scheduled to report earnings after market close on Thursday, with the analyst anticipating a beat and positive revisions driven by AI-related demand.
Key partnerships highlighted include Microsoft’s Maia and AWS Trainium accelerators, alongside an expanded collaboration with Google. Dogra noted that Marvell’s focus on custom chip solutions for fiscal years 2028 and 2029 aligns with industry trends favoring specialized accelerators over general-purpose chips.
The analyst also addressed rising semiconductor development costs, which now exceed $500 million per chip design compared to $50 million a decade ago. This cost inflation has accelerated consolidation among digital chip suppliers, positioning Marvell to benefit from intellectual property reuse and lower per-socket development expenses.
Marvell’s investor day, scheduled for early October, is not expected to alter the company’s disclosed interconnection and custom chip growth framework for fiscal 2028 and 2029.
