Marvell (MRVL) Gets Strong Buy as Raymond James Backs XConn Acquisition

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the AI Stocks Analysts Are Watching Closely. On January 6, Raymond James analyst Simon Leopold reiterated a Strong Buy rating on the stock with a $125.00 price target. The rating affirmation follows Marvell’s announcement of intent to acquire XConn, a provider of PCIe and CXL switching silicon and UALink technology.

The deal, worth about $540M, is expected to strengthen its AI data center connectivity solutions. Marvell noted that this acquisition enhances its switching portfolio by adding XConn’s PCIe and CXL products and strengthens Marvell’s Ultra Accelerator Link (UALink) scale-up switch team.

"This combination creates a compelling switching platform for accelerated infrastructure, advancing Marvell’s connectivity strategy for next-generation AI and cloud data centers.” -Marvell's Chairman and CEO Matt Murphy.

Raymond James favors this deal favorably, noting how the company’s product portfolio needed to catch up in this area. XConn’s technology can enhance Marvell’s market reach and also complement its xPU/ASIC offerings. The firm said that it is not adjusting its estimates for MRVL at this time since XConn is described as an early-stage company.

Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.

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Disclosure: None.