Marvell Technology Stock Rallies After AI Event Sparks Investor Optimism

Shares of Marvell Technology (NASDAQ: MRVL) climbed nearly 8% on June 19, following the company’s AI-focused investor event that highlighted its expanding role in the custom semiconductor market. The presentation marked a pivotal moment in Marvell’s positioning within the rapidly evolving AI hardware landscape, and investors responded with strong buying interest.

The event showcased Marvell’s latest advances in custom AI accelerators, along with a bullish outlook on the market opportunity ahead. The company raised its estimate for the custom AI chip total addressable market (TAM) to $55 billion by 2028, up from a prior estimate of $43 billion. It also increased its data center semiconductor TAM to $94 billion, a jump from its earlier projection of $75 billion.

Marvell also disclosed two new customer wins for its next-generation AI accelerators, adding to its existing portfolio of three major partners, likely hyperscale cloud providers, although names weren’t disclosed.

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Several major analysts responded positively to the event. Bank of America raised its price target to $90, calling Marvell’s pipeline “stronger and more diverse than previously understood.” Deutsche Bank reaffirmed its bullish stance with an $85 target, while Citi and Morgan Stanley held steady at $96 and $73, respectively.

The rally comes as a welcome reversal for Marvell, which had been under pressure for much of the year and remains roughly 30% below its 52-week high. The AI presentation appears to have restored confidence in the company’s roadmap and its ability to compete with larger players like Nvidia and Broadcom in the fast-growing AI infrastructure space.

Still, analysts note that sustained momentum will depend on execution, especially around revenue visibility, hyperscaler retention, and the ability to convert design wins into long-term production contracts.

As AI continues to reshape the semiconductor landscape, Marvell’s more aggressive push into custom chips could give it a critical edge—if it can deliver on what it’s now promised.

MRVL is one of the most crowded hedge fund stocks that are targeted by short sellers.

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Disclosure: None.