Marvell Technology will reap the benefits from the growth of artificial intelligence due to its deep and broad base of intellectual property, Bank of America predicts. On Thursday, the bank reiterated its buy rating ahead of the chipmaker's AI presentation next Thursday. Its $95 price target suggests 34% upside from Thursday's close. MRVL YTD mountain Marvell Technology year to date At the event, analyst Vivek Arya expects Marvell Technology to outline a $20 billion to $30 billion incremental total addressable market. "AVGO dominates the custom chip market ($7.5bn or 75% share of the $10-11bn custom chip market in CY24E), but we expect MRVL to become more relevant and eventually claim over 10% share in the custom AI chip market," Arya wrote in a note to clients, referring to Broadcom and Marvell by their ticker symbols. That translates to $2 billion to $3 billion annually by 2026/2027, versus $0.6 billion this year and $1 billion expected in 2025, he said. He also expects Marvell to reinforce its competitive differentiation in custom chips compared to lower-priced Taiwan rivals, similar to an argument recently made by Broadcom . Arya also expects management at the AI event to address Marvell's leadership in inter- and intra-data center AI optics and its ability to transition to silicon photonics. Shares of Marvell are up more than 17% year to date.
