Marvell Technology Inc (NASDAQ:MRVL) surged 11.3% to $121.33 on Friday, buoyed by Broadcom's robust earnings and optimistic AI growth projections, which highlighted the vast opportunities in the custom chip (ASIC) market.
Both companies are major players in developing ASICs tailored for hyperscale AI infrastructure, essential for data centers supporting advanced AI workloads.
What Happened: Broadcom revealed its AI-related revenue is set to grow from $15-$20 billion in 2024 to $60-$90 billion by 2027, driven by surging demand from hyperscalers like Google.
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While Broadcom leads in deploying 3nm ASICs, Marvell is well-positioned to benefit from this trend, serving overlapping customers with a complementary portfolio of custom chips and networking solutions critical for AI cluster performance.
The AI market's rapid expansion, with Broadcom projecting a 40%-50% annual growth rate in AI revenues, validates strong demand for ASIC technology. Marvell's expertise in high-speed data transport and networking, which connects compute nodes in AI systems, aligns it with this momentum.
Investors might see Marvell as a natural beneficiary of the growing AI serviceable available market (SAM), as it strengthens partnerships with hyperscalers and accelerates its own next-gen ASIC roadmap.
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Is MRVL A Good Stock To Buy?
Wall Street analysts view Marvell Technology on the whole as a Outperform, given the history of coverage over the past three months. Christian Schwab from Craig-Hallum in Marvell Tech is the most optimistic, expecting a 50.0% rise in the stock in the coming year.
But looking at how the market as a whole thinks of the stock, you can reference historical price action for views on whether investors feel strongly about the stock one way or another. In the past 3 months, Marvell Tech rose 61.12%, which indicates that opinion improved on the business and how attractive it is to own based on either its stock price, or underlying fundamentals, like revenue, which rose 6.84% over the past year.
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According to data from Benzinga Pro, MRVL has a 52-week high of $121.86 and a 52-week low of $53.19.
