Artificial intelligence (AI) stocks have been the big winners over the past year or so, with names such as Nvidia (NASDAQ:NVDA) and Super Micro Computer Inc (NASDAQ:SMCI) making significant gains as demand for AI surges and the potential use cases grow.
However, analysts at B Riley Securities highlighted one AI stock that they believe could still see strong upside.
Analysts bullish on MRVL stock ahead of event
The investment bank said the attention is on Marvell Technology Inc's (NASDAQ:MRVL) April 11 YC AI Era event. The firm maintained a $95 per share price target and Buy rating on the stock in a note this week, stating that the potential 30% upside justifies the bullish rating.
“We return to MRVL ahead of 4/11’s NYC AI Era event to review execution to similar past event targets, frame recent industry context, outline event expectations, and look ahead to early on-cycle reporting’s AI supply/demand data points” explained the firm.
“Looking back, we see in-line to better product release timing and sales growth versus targets, but more recently, late-March OFC optical interconnect data points lent some tech roadmap uncertainty we suspect MRVL can refute,” they added.
The firm expects a focus on high-interest Data Center AI and Auto product cycles with rapidly growing SAMs and a broadening MRVL design win substantiation.
While they don’t expect a target financial model update, B Riley does see ample room for an uptick in investor confidence.
“Overall, we believe investors will depart with a clearer picture of underlying growth drivers and the potential for MRVL sales to rise toward $9.0B to $10.0B long term,” they wrote.
Looking beyond the event, in late April, B Riley sees upbeat AI-related news from AI leaders TSMC (GPUs), SK Hynix (HBM) and SMCI (NVDA-based systems).
What are other analysts saying about Marvell
B Riley is not the only firm bullish on MRVL. Last week, analysts at Citi opened a 30-day upside catalyst watch on the company’s shares going into the AI Era investor event.
“Recent stock under performance post weaker than expected Apr-Q guide on non-core enterprise networking/carrier infrastructure end markets and optical concerns around use of copper-based connectivity solutions such as the NVLink Switch (NYSE:SWCH) during GTC offers an 18% valuation discount to AI peers,” stated Citi.
The bank expects Marvell to talk about an estimated $40 billion custom ASIC total addressable market by 2027 and custom ASIC ramps, including AWS Trainium 2 (5nm) and Arm based CPUs at the AI investor day.
Citi also noted that AI-exposed peer stocks like NVDA, Broadcom Inc (NASDAQ:AVGO), and AMD (NASDAQ:AMD) moved up into their respective AI days, and “the setup appears similar for MRVL after the recent pullback."