Marvell (MRVL) Expands Role in Cloud Infrastructure and Semiconductor Innovation

Marvell Technology, Inc. (NASDAQ:MRVL) is among Goldman Sachs’ top semiconductor stock picks. On January 14, RBC Capital Markets initiated coverage on Marvell Technology, Inc. (NASDAQ:MRVL) with an Outperform rating. The firm set a $105 price target on the shares citing Marvell’s dominance in the data center market.

According to Srini Pajjuri, the lead analyst, Marvell appears to have robust orders for the AWS Trainium3 chip program. Pajjuri also noted that the company’s recent Celestial acquisition and warrant agreement suggest it is likely to remain a key application-specific integrated circuit (ASIC) supplier for Trainium4. In fewer words, Pajjuri is of the opinion that Marvell’s business, particularly the optical segment, is on solid footing.

The analyst also touched on Marvell’s valuation, stating that “valuation is at a 25% discount to peers.” As a result, the firm is of the opinion that Marvell’s risk/reward is attractive.

Independent of the analyst action, on January 6, Marvell announced its intent to acquire XConn Technologies, a specialist in advanced PCIe and CXL switching silicon. The company said the move should bolster its position in artificial intelligence and cloud data center connectivity.

The deal, valued at around $540 million, will be funded with roughly 60% cash and 40% stock, Marvell said. This equates to about 2.5 million shares of Marvell common stock based on a 20-day volume-weighted average price. The company expects the transaction to close in early 2026.

Marvell Technology, Inc. (NASDAQ:MRVL) designs and develops semiconductors used in data centers, enterprise networking, carrier infrastructure, and automotive systems. Its portfolio of processors and networking semiconductors supports the growing demand for high-performance infrastructure.

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