Marvell just gave a bullish outlook. It led TD Cowen to upgrade the stock
Marvell Technology has been on a tear this year, and the semiconductor stock is unlikely to lose that momentum anytime soon, according to TD Cowen. The bank upgraded the chip stock to buy from hold. It also raised its price target on shares to $350 from $245, suggesting 22% upside from Tuesday’s close. “The fundamental growth drivers for the company have, in our view, now fully shifted to the company’s strong connectivity franchise and more importantly the concentration (and margin) risk associated with custom [specialized microprocessors] programs has been largely de- Risked,” analyst Sean O’Loughlin said Wednesday in a note to clients. Shares have jumped 238% year to date, vastly outperforming the overall market as widening use of artificial intelligence has spurred demand for the hardware solutions that power the emerging technology. MRVL YTD mountain Shares are up 238% year to date. Marvell executives have also noted that the company is well positioned to leverage those tailwinds to accelerate its growth in a recent presentation to investors. Marvell held its 2026 investor day in New York City on Tuesday. There, it raised its revenue outlook to $20 billion from $18 billion and unveiled a long-term revenue target in the range of $70 billion to $90 billion. Although those targets appeared ambitious to some analysts on the Street, O’Loughlin said they should be well within reach for Marvell. “The fundamentals underpinning the target are not as aggressive as they might seem, with management’s strategic outlook contemplating a deceleration in both hyperscaler capex and AI infra spending,” the analyst wrote. “Further, as management laid out. … Marvell has developed and assembled a portfolio of industry-leading connectivity IP. The company is positioned with a strong value proposition in every scaling domain in AI: out, up, across, and in.” TD Cowen’s call falls in line with consensus on Wall Street. Of the 45 analysts covering Marvell Technology, 41 have a buy or strong buy on the stock, LSEG data shows.
About the Author
