Marvell (MRVL) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.
This bear call spread wins if MRVL drops, goes sideways or even if it jumps 15%.
Marvell (MRVL) shares have dipped more than 8% this month so far due to the impact of more restrictions by the U.S. government on limiting China's access to advanced AI chips.
Marvell Technology (MRVL) closed the most recent trading day at $63.99, moving -0.56% from the previous trading session.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Marvell's AI Chip Story Has More Upside Ahead
In the fiercely competitive semiconductor industry, Nvidia Corp often captures the spotlight with its groundbreaking AI advancements. However, the industry's next major winners might not be the usual suspects.
In the latest trading session, Marvell Technology (MRVL) closed at $73.62, marking a +2% move from the previous day.
Marvell Technology is underperforming in the market, but has potential for valuation expansion due to changing demand in data center market. Marvell's data center revenue is at an all-time high, benefiting from changing trends in AI chip demand from hyperscalers. Valuation indicates potential upside of 24-25% for Marvell, with expectations of revenue growth through FY27 and expanding operating margins.
Marvell is a leading supplier of semiconductor solutions for data centers and several other markets. It expects AI-related revenue to make up nearly 30% of its business this year.
Marvell notched a healthy rebound in 2023, but shares have stalled. AI chips haven't been enough to offset the downturn elsewhere in the business.
Marvell Technology (MRVL) launches the Alaska A 1.6T PAM4 DSP for active electrical cables focusing on high-speed networking for AI/ML workloads.