TECH - Can Marvell Technology's AI Strengths Balance Persistent Industry Headwinds This Analyst Has Answer | Benzinga
Susquehanna analyst Christopher Rolland reiterated a Positive rating on Marvell Technology, Inc (NASDAQ: MRVL) with a price target of $70.
Rolland expects Inphi to be the highlight driven by AI attachment rate, but with strength here offset by ongoing challenges.
Marvell reports earnings on November 30. The analyst expects generally in-line results but weaker guidance as Storage, Carrier, and Networking headwinds persist, more than offsetting positive AI momentum.
For DC, higher AI demand bodes well for Marvell's PAM4 DSPs (Inphi), DCI, Ethernet switching, and custom ASICs.
Last quarter, Marvell increased their 2023 AI-related revenue target (previously $400 million, now higher) this year, suggesting the 2024 $800 million AI estimate was too low.
With an attach rate of >1 DSP per GPU, Marvell benefits from the sizable demand Nvidia Corp (NASDAQ: NVDA) is seeing with DGX/H100 deployments ...