RBC Capital raised its price target on Marvell Technology stock to $200 from $170 while maintaining an Outperform rating.
The stock currently trades at $177.95, up 110% year-to-date and near its 52-week high of $182.31.
The firm expects Marvell (NASDAQ:MRVL) to deliver a slight beat and raise guidance, with upside driven primarily by its optical business.
Analysts view Nvidia's recent investment as validation of Marvell's optical connectivity leadership. Custom XPU trends appear solid, though near-term upside may be limited due to tight wafer supply.
According to Bond.az data, Marvell is trading above its Fair Value, despite strong revenue growth of 42%.
RBC Capital expects Marvell to remain a key supplier to Amazon, and views AWS's recent OpenAI and Anthropic partnerships as material long-term positives. Microsoft's XPU appears on track for an early 2027 ramp.
Marvell has multiple XPU-attach custom engagements across hyperscalers. RBC Capital expects topline momentum to sustain for the next two to three years.
In other news, Marvell announced the acquisition of Polariton Technologies. Bank of America Securities also raised its price target to $200. However, JPMorgan dismissed reports that Marvell secured TPU business from Google.
