TLDR
- KeyBanc raised its MRVL price target 48% to $385, reaffirming an Overweight rating
- MRVL rose ~6.4% to $308.60 in premarket trading Thursday
- Marvell has gained 51% in June and 263% year-to-date
- KeyBanc sees optical-networking as more durable than Marvell’s custom AI chip business
- Marvell plans to use TSMC’s 1.4-nanometer A14 process for next-gen AI chips
Marvell Technology (MRVL) stock jumped in premarket trading Thursday after KeyBanc Capital Markets hiked its price target by 48%, citing growing confidence in the company’s optical-networking business.
Marvell Technology, Inc., MRVL
KeyBanc analyst John Vinh raised his price target to $385 from $260, while reaffirming an Overweight rating. That target sits 33% above Wednesday’s closing price of $289.54.
MRVL climbed 6.4% to $308.60 in premarket Thursday. The stock has now gained 51% in June alone, and is up 263% year-to-date, according to Dow Jones Market Data.
The move follows an investor meeting KeyBanc hosted with Marvell. Vinh came away more bullish on the optical-networking side of the business, calling it potentially more “durable” than Marvell’s custom AI chip business.
“Networking represents the most durable growth opportunity,” Vinh wrote, adding that the total addressable market for optical networking could reach around $30 billion by 2030.
Marvell makes the digital signal processors inside optical transceivers — the components that convert electrical signals into light for faster data transfer inside AI data centers. As those data centers keep scaling up, demand for that technology grows with them.
Optical Networking Takes Center Stage
Marvell’s custom AI chips, known as ASICs, have long been the headline driver for the stock. But Vinh noted that optical networking is now likely to be the bigger focus for investors going forward.
That said, the AI chip business isn’t being written off. Vinh sees a “clear line of sight” to $10 billion in revenue from AI chips by 2030, backed by demand from AWS and Microsoft.
Marvell has been actively building out its networking portfolio. The company recently announced acquisitions of Celestial AI for $3.25 billion and XConn for $540 million. Nvidia also invested $2 billion in Marvell as part of a collaboration deal.
TSMC’s 1.4nm Process in the Mix
A separate Nikkei Asia report added to the positive sentiment Thursday. According to the report, Marvell plans to use Taiwan Semiconductor’s upcoming A14 1.4-nanometer process for its next generation of AI chips.
Marvell President and COO Chris Koopmans said the company will continue using TSMC “if Taiwan Semiconductor maintains the absolute best technology in the world.”
Marvell’s data center business now accounts for more than 75% of total company revenue.
The next scheduled earnings release is estimated for August 27, 2026. Wall Street expects earnings of 87 cents per share, up from 67 cents a year ago. Revenue is projected at $2.70 billion, versus $2.01 billion in the prior-year quarter.
MRVL’s price-to-earnings ratio currently sits at 99.5, reflecting a premium valuation.
Recent analyst actions include B. Riley Securities raising its Buy target to $345 on June 12, and Barclays raising its Overweight target to $275 on May 29.
MRVL was trading up 4.89% at $303.70 in premarket trading Thursday.
🚨 Our JUNE Stock Picks Are Live!
A new month means new opportunities. Our analysts have just released their top stock picks for June, highlighting companies with strong momentum that rank highly on our KO Score algorithm. We’re also now sharing trade ideas for both long-term and short-term investors, giving you more ways to spot potential opportunities in the market.
Sign up to Knockout Stocks today and get 50% off to unlock the full list and see which stocks made the cut.
Use coupon code Special50 for your exclusive discount!
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
