Melius Sets $135 Target on Marvell (MRVL) as Custom Silicon Demand Accelerates

Marvell Technology, Inc. (NASDAQ:MRVL) is included among the 13 Best January Dividend Stocks to Invest in.

On January 5, Melius Research upgraded Marvell Technology, Inc. (NASDAQ:MRVL) to Buy from Hold and set a $135 price target. The analyst noted that the stock is down about 11% from its recent intraday high. From their perspective, Marvell’s backlog in custom silicon continues to build. Revenue from this segment is expected to double in calendar year 2027, driven by Microsoft’s MAIA chip and the ramp of several XPU-attach sockets. The analyst also pointed out that Microsoft’s internal silicon design capabilities still lag those of AWS’s Annapurna Labs. That gap could leave room for a larger share of profits to flow to external custom silicon providers such as Marvell Technology.

Marvell Technology, Inc. (NASDAQ:MRVL) has been benefiting from fast-growing demand for AI-focused application-specific integrated circuits used in data centers. These ASICs are designed to handle AI workloads more efficiently, offering higher speeds and better power efficiency than general-purpose chips like GPUs.

As a result, hyperscalers and AI-focused companies are increasingly turning to ASIC designers to build in-house chips. Demand has picked up sharply. According to TrendForce, ASIC shipments are expected to grow 45% in 2026, compared with an estimated 16% increase in GPU shipments. That trend places Marvell in a strong position going into 2026. The company counts major customers such as Alphabet, Amazon, and Microsoft among its client base.

Marvell Technology, Inc. (NASDAQ:MRVL), along with its subsidiaries, supplies data infrastructure semiconductor solutions across the data center core and out to the network edge.

While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.