Marvell Technology, Inc. (NASDAQ:MRVL) is one of Hot AI stocks on Wall Street’s radar. On December 9, Stifel maintained its Buy rating on the stock with a price target of $114.00. The firm’s analysts called recent market rumors baseless, reaffirming their confidence in the positioning of the company’s ASIC platform.
Defending the company’s platform status against recent noise, the company noted that speculation that Marvell could lose its XPU socket to a competitor for “a second and larger ASIC customer is baseless.”
“We believe that reports that Marvell may lose its XPU socket to a competitor for its second and largest ASIC customer are unfounded. We also believe that market reports yesterday suggesting that Marvell is not participating in its largest ASIC customer’s next generation platform are misleading.”
Citing The Information’s report that Microsoft was in talks to move from Marvell to Broadcom for its custom chip business, the company noted that such a move would not fit typical design cycles. In fact, it would take three to four years to develop the chips.
“We believe the timing of this speculation does not match this reality. Any hypothetical discussions of a partner change underway would not have a material impact on revenue until FY29 at the earliest.” -Analyst Tore Svanberg.
The company also pushed back against Benchmark’s claims that Marvell was at risk of losing contracts to provide the design for Amazon’s Trainium 3 and 4 chips. The company noted that while the company may not have the exact level of content in next-generation chips as in Trainium 2, the company’s directions appear solid anyway.
Marvell Technology, Inc. (NASDAQ: MRVL) is engaged in the development and production of semiconductors, with a strong focus on data centers.
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