According to the Wisdom Financial APP, Citigroup maintains a "buy" rating on Marvell Technology (MRVL.US) with a target price of $91, highlighting confidence in the company's ai sales target increase.

Analysts led by Atif Malik pointed out that due to the strong growth of custom Application-Specific Integrated Circuits (ASIC) and the continued strong demand for 800G optical modules, they expect Marvell Technology's market expectations in the second half of 2024 to rise. Fundamentally, they still believe that only two companies have the ability to provide the technological expertise needed to design cutting-edge custom ASIC chips, and Marvell Technology is one of them.

Analysts stated that the management is confident in short-term and long-term custom ASIC opportunities for the three mega-scale customers A, B, and C, which will drive the ai total sales target to reach $1.5 billion/ $2.5 billion in fiscal years 25/26.

Analysts believe that Marvell Technology may see strong growth in Trainium2 chips this year, and point out that Amazon's (AMZN.US) AWS CEO Matt Garman is excited about the launch of the new training chips and expanding AWS artificial intelligence/machine learning (AI/ML) workloads/capacity at recent meetings.

Malik and his team believe that Google's (GOOGL.US) Arm CPU capacity increase this year may be small, but if this mega-scale company decides to expand the project to general-purpose processors, the increase next year could be significant.

Analysts state that in 2026, Microsoft (MSFT.US) remains the biggest opportunity, and they believe Marvell Technology is also capable of benefiting in the future from Open AI and Oracle's (ORCL.US) new custom ASIC projects.

Marvell Technology believes that its non-ai business in enterprise networks and carrier infrastructure will bottom out in the first half of 2024 after falling below terminal demand, with a recovery expected in the second half of the year. However, analysts point out that it remains to be seen when the non-ai sales will reach the normal sales level of about $2 billion.

Due to strong growth in demand for customized ASICs and 800G optical modules, analysts expect Marvell Technology's revenue to show stronger sequential growth in the fourth quarter.

Overall, Citigroup analysts state that due to the continuous growth of AI optical devices, layered sales of customized ASIC AI projects, and the bottoming out rebound in non-cloud markets such as enterprise networks and carriers, they rate Marvell Technology as a "buy."