TD Cowen Cuts Marvell (MRVL) Target While Highlighting Strong AI Infrastructure Outlook

Marvell Technology, Inc. (NASDAQ:MRVL) is included among the 13 Best Income Stocks with Highest Upside Potential.

On February 24, TD Cowen analyst Joshua Buchalter lowered the firm’s price recommendation on Marvell Technology, Inc. (NASDAQ:MRVL) to $85 from $100. He reiterated a Hold rating on the shares ahead of earnings. The analyst said investment in AI infrastructure continues to increase, and expectations remain strong. He noted that these trends should support semiconductor estimates in 2026 and 2027. At the same time, share valuations have declined, which TD Cowen believes could create opportunities. The firm said it remains constructive on companies involved in compute and networking.

On February 2, Marvell announced it had completed its acquisition of Celestial AI, a company focused on optical interconnect technology. This technology is designed to support high-speed, low-latency connectivity for large-scale AI systems. The acquisition expands Marvell’s capabilities in AI and cloud data center infrastructure.

Marvell expects the acquisition to begin contributing revenue in the second half of fiscal 2028. The company projects growth to a $500 million annualized run rate by late fiscal 2028, with revenue reaching $1 billion annually by fiscal 2029. The deal will increase operating expenses by about $50 million per year. Marvell also used $1 billion in cash to complete the acquisition, which will reduce its interest income. In addition, the company issued new shares, increasing its total share count by about 27 million.

Marvell Technology, Inc. (NASDAQ:MRVL) provides semiconductor solutions for data infrastructure. The company designs, develops, and sells integrated circuits used across data centers and network infrastructure.

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