Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Top AI Stocks in the Spotlight on Wall Street. On September 25, Needham analyst N. Quinn Bolton raised the price target on the stock to $95.00 (from $80.00) while maintaining a Buy rating. The rating affirmation follows CEO Matt Murphy’s comments made at a competitor’s fireside chat regarding the company’s custom silicon business.
According to the firm, Murphy has made efforts to ease investor concerns by revealing there should be no revenue gap next year in custom silicon, particularly at AWS. He also provided target growth rates for the Data Center segment and its sub-segments for fiscal year 2027.
Custom silicon revenue is anticipated to remain stable, while FY27 Data Center growth is in line with hyperscaler CapEx at +18% Y/Y. Optics and other segments are poised to grow faster.
“Yesterday, CEO Matt Murphy spoke at a competitor’s fireside chat. Our key takeaways include: 1) Murphy tried to ease investor concerns about the custom business by confirming there should be no revenue gap next year in custom silicon, specifically at AWS. 2) Provided target growth rates for Data Center and its sub-segments in FY27, in which DC is expected to grow in line with hyperscaler CapEx at +18% Y/Y. Optics should outgrow the +18% Y/Y growth rate, custom silicon is expected to grow in line, and other/emerging should grow double-digits Y/Y; and 3) Highlighted opportunities in scale-up network connections and sees the company well positioned to capitalize on them. Reflecting Murphy’s comments, we reduce our custom silicon forecast but raise our optics/other forecast for FY27, driving slight upside to NG GM and NG EPS. Raise PT to $95.”
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
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