B. Riley Stays Bullish on Marvell (MRVL) as Custom Solutions Strategy Gains Momentum

Marvell Technology Inc. (NASDAQ:MRVL) is one of the most oversold semiconductor stocks so far in 2025. The company held its ‘Custom AI Investor’ Event on June 17, where the management gave an update on its focused strategy. The company estimates its data center market total addressable market at $94 billion and is planning to expand its market share from less than 5% in 2023 to 20% by 2028.

B. Riley Stays Bullish on Marvell (MRVL) as Custom Solutions Strategy Gains Momentum

A close up of a detailed computer server in a secure data center.

As per the strategy laid out at the event, the company is well-positioned to capitalize on the accelerating demand for AI infrastructure, which is projected to reach $1.02 trillion by 2028, indicating a 20% CAGR in total data center capex. As of FY 2025, Marvell has grown its Cloud AI revenue to approximately $4.0 billion, with over 25% now derived from custom solutions. This is expected to surpass 50% in the longer term.

Following the event, a B. Riley analyst raised his price target on the stock to $115 from $110, while maintaining a Buy rating. The analyst highlighted the event as an encouraging signal for Marvell’s next phase of growth in AI and a clear inflection in demand.

Marvell Technology Inc. (NASDAQ:MRVL) is a fabless semiconductor company that develops high-performance chip solutions for data infrastructure, supporting everything from cloud data centers to 5G networks and enterprise storage.

While we acknowledge the potential of MRVL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MRVL and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.