Analysts are saying this chipmaker, which just held an AI event, is the most levered to the trend besides Nvidia

Published Fri, Apr 12 202411:23 AM EDTUpdated Fri, Apr 12 202411:36 AM EDT

Investors may want to keep an eye on Marvell Technology , as it is poised for artificial intelligence success, according to Wall Street analysts. "MRVL hit back at some recent debates and laid a case that, next to NVDA, it is the company in the sector that is most levered to AI given its broad [intellectual property] portfolio and leverage across the data center," wrote UBS analyst Timothy Arcuri in a Thursday note. The commentary comes on the back of the chipmaker's AI event on Thursday, where it announced a new compute customer many speculate could be Microsoft. The stock is up 19% this year. MRVL YTD mountain MRVL year to date According to Arcuri, the commentary surrounding 2025 revenue also creates room for upside to estimates, while forecasting that opportunities in segments such as autos could push total revenues to $20 billion by the 2028 calendar year. JPMorgan's Harlan Sur said in a note to clients the company looks situated to continue building market share in the AI and data center industry, estimating that AI application-specific integrated circuits could hit $7 billion to $8 billion in sales by 2028. "Bottom line, if the team can execute on its datacenter growth strategy and capture 17% share of the datacenter [total addressable market] opportunity in CY28, we can conservatively see $6-$7 of EPS during this period of time – which implies significant upside in the stock," he wrote. Goldman Sachs analyst Toshiya Hari expects the growing total addressable market within the compute industry and its "comprehensive" product portfolio to enable Marvell to obtain "above-industry growth" in the coming years. On the back of the event, Wells Fargo analyst Gary Mobley lifted 2025 revenue and earnings per share estimates to account for a quicker ramp in AI sales. "We view MRVL as more of an idiosyncratic chip company, one that outperforms the overall chip industry growth rate in good and bad times," he wrote. "We believe MRVL is in a position to grow revenue at a 15-20% pace over the long term." While Morgan Stanley continues to view the stock as an AI winner, analyst Joseph Moore noted he still favors Nvidia. That is in part due to the "sideways" action Marvell has experienced over the past year and its elevated multiple. "We would see this story on the positive side of the AI debates, and the company made a strong case, but we do have a preference for NVDA with stocks at current levels," he said.