Marvell Technology Gains Wall Street Confidence on AI Infrastructure Push

Wall Street analysts are expressing renewed optimism toward Marvell Technology, as the semiconductor specialist makes significant strides in positioning itself as a key infrastructure provider for artificial intelligence. This confidence follows robust quarterly earnings and a major strategic acquisition, with Citigroup highlighting substantial upside potential for the company's shares.

The company recently reported third-quarter results that surpassed market expectations. Revenue surged 37% year-over-year to a record $2.08 billion, with the data center segment contributing the largest portion. Adjusted earnings per share came in at $0.76, exceeding consensus estimates.

Concurrently, Marvell announced a definitive agreement to acquire Celestial AI for $3.25 billion in cash and stock. Market observers view this move as a direct strategic challenge to competitors like Nvidia and Broadcom. Celestial AI specializes in optical interconnect technology, which is considered critical for transporting massive data loads efficiently within modern AI clusters. Investors appear to be interpreting the substantial price tag as a necessary investment to secure technological leadership.

Analyst Upgrade and Price Target

Fueling positive investor sentiment, Citigroup analyst Atif Malik reinstated coverage of Marvell Technology with a "Buy" rating and set a price target of $114 per share. This endorsement provided significant momentum, with the stock closing the week at €84.84, marking a weekly gain of over 8%.

Should investors sell immediately? Or is it worth buying Marvell Technology?

Malik's bullish stance is rooted in the company's aggressive expansion into AI infrastructure. He forecasts accelerated revenue growth for fiscal years 2026 and 2027, driven by booming demand for specialized data center solutions. This outlook aligns with management's own projection, which anticipates data center revenue growth exceeding 25% for fiscal 2027.

Market Repositioning and Technical Momentum

The recent developments signal a shift in how the market values Marvell. It is increasingly being seen not merely as a chip designer, but as a critical infrastructure supplier for the AI era. For the fourth fiscal quarter, management has provided revenue guidance of approximately $2.2 billion, indicating sustained business momentum.

From a technical analysis perspective, the share price has recently moved decisively above its 50-day moving average of €76.08. Moving forward, investors will closely monitor the integration process of Celestial AI and the company's progress toward achieving its ambitious growth targets in the custom silicon segment.