RBC Bullish on Marvell’s (MRVL) Data Center and AI Chip Growth

Marvell Technology, Inc. (NASDAQ:MRVL) ranks among the most promising QQQ stocks according to hedge funds. On January 14, RBC Capital launched coverage of Marvell Technology, Inc. (NASDAQ:MRVL), with an Outperform rating and a price target of $105. The firm underlined Marvell’s dominant position in the data center sector, citing the company’s significant contracts for AWS Trainium3 chips and its new Celestial acquisition, implying that Marvell Technology, Inc. (NASDAQ:MRVL) will continue to be an important ASIC supplier for Trainium 4.

Analyst Srini Pajjuri described Marvell’s optical division as “on solid footing,” but identified scale-up and custom SmartNICs as “underappreciated growth opportunities” for the company.

Moreover, on January 6, Marvell Technology, Inc. (NASDAQ:MRVL) signed a definitive deal to acquire XConn Technologies for roughly $540 million. This acquisition is expected to be paid for with a combination of cash and stock, totaling about 2.5 million shares of MRVL common stock.

Marvell Technology, Inc. (NASDAQ:MRVL) is a semiconductor development and manufacturing company with a major focus on data centers.

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