From Financial Modeling Prep: 2025-01-27 11:38:00

Melius analysts initiated coverage on Marvell Technology (NASDAQ:MRVL) with a Buy rating and a $188 price target, citing strong positioning in the AI infrastructure market and near-term growth catalysts. Marvell aims to capture 20% of the custom accelerator market, potentially generating $8 billion in revenue by 2028, driven by partnerships with customers like Microsoft.

Marvell’s strategy focuses on custom accelerators for cloud providers, networking chips for AI workloads, and cyclical recovery in traditional segments. Analysts believe Marvell’s long-term earnings power could exceed $6 per share as its custom compute and AI pipeline expands. The $188 price target reflects a 40x P/E multiple based on fiscal year 2028 EPS estimates.

Analysts anticipate Marvell to outperform expectations in the current quarter and potentially raise estimates for the addressable market during an upcoming analyst day in June. The company’s strong operating leverage and free cash flow position it for sustainable growth and share count reduction over time, aligning it with top-tier AI infrastructure players like Nvidia and Broadcom.



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