Research
Research Alert: CFRA Keeps Buy On Shares Of Marvell Technology - Diversifying Away From Aws
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We up our 12-month target to $170 from $150, on higher revised P/E of 32.5x our CY 27 EPS, near historical and reflects our view of potential upside to forward estimates. According to unconfirmed reports, MRVL is in discussions with Alphabet (GOOGL) to co-develop new AI inference chips, with the partnership targeting two specialized chips: a memory processing unit (MPU) to work alongside GOOGL's existing TPUs and an inference-specific customer silicon TPU. GOOGL aims to complete the MPU design as early as CY 27 before initiating test production, with MRVL expected to provide design services similar to MediaTek's role in Google's "Ironwood" TPU development. Also, this move will not replace GOOGL's largest chip partner, Broadcom (contract just extended to CY 31), but does add a third design partner and enhances supply chain resilience amid constraints. This potential collaboration also builds on MRVL's existing work on GOOGL's Axion ARM CPUs and further diversifies its AI strategy away from being AWS dominant.
$MRVL