Marvell Technology will continue to be a winner of the red-hot artificial intelligence trade despite potential supply constraints, according to Oppenheimer. The investment firm has an outperform rating on the semiconductor name. It also has a $170 price target on shares, implying 27% upside from Tuesday’s close. “We see MRVL share stable to increasing across core networking markets…and look for the segment to lead upside if our [capital expenditure] assumptions prove conservative,” analyst Rick Schafer said in a note to clients. Last month, the company struck a $2 billion deal to connect its technology to the Nvidia AI factory and AI-RAN ecosystem, with the aim of bolstering efforts to develop next-generation AI infrastructure. That should expand Marvell’s total addressable market for networking products, according to the analyst. Oppenheimer sees revenue from networking interconnects growing more than 50% to $5 billion this year. It also expects the firm to bring in more than $600 million from its switch offerings and more than $2 billion from application-Specific Integrated Circuits, or specialized microchips, in 2026. Overall revenue seems poised to hit the high-teens billion dollars from $15.2 billion, if the company notches network growth of around 50% this year and next, the analyst added. To be sure, supply constraints affecting wafers, or a critical component in some microdevices like semiconductor chips, threaten to limit the firm’s growth. However, Marvell management should be able to build ahead in the company’s merchant networking franchise, protecting the company from such a headwind, according to Oppenheimer. Shares are up more than 57% in the year to date, vastly overperforming the overall market.
