RBC Reiterates Outperform on Marvell (MRVL) as AI Infrastructure Thesis Strengthens

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 AI Stocks Analysts Are Watching. On February 2, RBC Capital analyst Srini Pajjuri reiterated an Outperform rating on the stock with a $105.00 price target. The firm remains confident in MRVL’s long-term AI infrastructure thesis despite near-term EPS dilution.

RBC Capital particularly updated MRVL’s estimates after the completion of the Celestial AI acquisition. The updated estimates align with management’s guidance, the firm noted, adding that it continues to view the acquisition favorably.

The firm further noted that AWS is interested in using Celestial’s optical chiplet solution for scale-up networking. This positions Marvell favorably for Amazon’s Trainium4.

“The acquisition along with AMZN warrant agreement should position MRVL particularly well for Trainium4, in our view.”

It added that its earnings per share estimates for Marvell have been slightly reduced due to stock issuance and higher operating expenses and interest expenses related to the acquisition.

“Our EPS estimates come down slightly on stock issuance and higher opex/interest expenses (Celestial revenue not expected to contribute until Q3FY28). We maintain our $105 PT and reiterate Outperform.”

As per the analyst report, revenue contribution from the Celestial AI acquisition is not anticipated until third quarter of fiscal year 2028.

Marvell Technology, Inc. (NASDAQ:MRVL) develops and manufactures semiconductors, with a heavy focus on data centers.

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Disclosure: None. This article is originally published at Insider Monkey.