10 AI Stocks in Focus on Wall Street

7. Marvell Technology, Inc. (NASDAQ:MRVL)

Number of Hedge Fund Holders: 76

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the 10 AI Stocks in Focus on Wall Street. On November 20, Raymond James assumed coverage on the stock with a Strong Buy rating and a price target of $121.00. The firm is bullish on the stock as it sees Marvell well-positioned for AI-driven demand and advanced packaging trends.

While analysts acknowledge how Marvell faces skepticism being a secondary custom silicon supplier, it believes it has the right ingredients due to its application specific integrated circuit business and optics segment.

“Marvell’s shares have traded 25–30× next-twelve-month (NTM) P/E after re-rating lower earlier this year (the 3-year and 5-year average is ~30×), and applying today’s 26× multiple to our $4.67 FY28/CY27 EPS estimate yields a price target of $121.”

The firm’s model reflects content share declines to 10% at Amazon because of more IP/design moves to Alchip and Amazon’s Annapurna internal design team. Moreover, it models Trainium/Inferencia chips totaling 1.5 million in CY25, increasing to 2 million in CY26 and 2.8 million in CY27.

It also assumes a similar 10% content ratio for Microsoft’s Maia as it “ramps to meaningful production from ~75K in CY25 to 382K in CY26 and 620K chips in CY27.”

The expected growth in shipments will likely drive custom compute sales to $1.4B (-6% y/y) in CY26 and $2.2B (+50% y/y) in CY27; added the analysts. Meanwhile, optics is expected to climb $4.4B and $5.6B in CY26 and CY27, growing 40% and 26%.

“Marvell is well positioned to thrive when advanced packaging becomes the market model with chiplets and massive amounts of interconnect.”

Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.