Marvell Technology (MRVL) is increasingly viewed as a key neutral enabler in AI infrastructure, described as the "Switzerland of interconnect" following investor meetings with management, Oppenheimer said in a Tuesday note.
The broker said management struck an unequivocally bullish tone, raising its revenue outlook to more than $11 billion this year from about $9 billion six months ago and projecting revenue of more than $15 billion in 2027, driven by strong data center demand for networking and custom AI ASICs.
Oppenheimer said Marvell's AI-driven businesses are growing rapidly, with custom AI ASIC revenue expected to at least double next year to about $4 billion before exceeding $10 billion in 2028.
The note added that data center accounts for about 75% of sales and is split roughly 70/30 between networking and ASICs in the near term.
The report also said Marvell has broad exposure across copper and optical interconnect technologies, positioning its portfolio across both scale-out and scale-up architectures.
Oppenheimer maintained its outperform rating on the stock and raised its price target to $170 from $150.
Shares of Marvell Technology were up 2% in Wednesday trading.
Price: $136.58, Change: $+2.78, Percent Change: +2.08%