Marvell Technology has received a boost in its stock as Citi analyst Atif Malik named the chip maker as his top specialty semiconductor pick. Malik maintained Buy ratings for both Marvell and Nvidia, with price targets of $75 and $575 respectively.
Marvell’s positive outlook is driven by anticipated growth in AI optics, increasing sales of custom ASIC AI projects, and a rebound in non-cloud markets such as enterprise networking and carriers. Despite posting lower fiscal third-quarter earnings and revenue compared to the previous year, Marvell remains optimistic about its diversified portfolio, with Chief Executive Matt Murphy emphasizing the company’s strong growth from AI and cloud sectors.
Marvell’s exposure to artificial intelligence has also garnered attention from analysts who predict further sales acceleration in 2024, driven by new product cycles and market share gains. Oppenheimer analyst Rick Schafer rates Marvell stock as Outperform with a target price of $70.
Meanwhile, Nvidia holds the position of Citi’s second specialty chip stock. The company has already experienced a gain of over 15% in 2024.
Overall, Marvell Technology’s designation as the top specialty semiconductor pick by Citi highlights its potential for future success in the market.
Written by Angela Palumbo
