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Anticipation Builds for Marvell Technology's AI Presentation, Analysts Predict 33% Upside

Citi highlights Marvell Technology's potential 33% upside before AI event, amid broader semiconductor industry optimism driven by AI advancements.

By Alex P. Chase

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3/27, 09:21 EDT
Advanced Micro Devices, Inc.
Broadcom Inc.
Alphabet Inc.
Marvell Technology, Inc.
Micron Technology, Inc.
NVIDIA Corporation
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Key Takeaway

  • Citi anticipates a 33% upside for Marvell Technology (MRVL) ahead of its AI presentation, with a $91 price target.
  • Micron Technology's earnings could "beat and raise," with Citi raising its price target to $150, indicating a 61% upside.
  • Semiconductor stocks like Nvidia, Alphabet, and Super Micro are rallying on AI advancements, boosting industry optimism.

Marvell Technology's AI Presentation Anticipation

Citi analyst Atif Malik has initiated a positive catalyst watch on Marvell Technology (MRVL) ahead of its AI presentation scheduled for April 11, citing a potential 33% upside to its current price, based on a $91 price target. This optimism is rooted in historical performances of similar stocks like Nvidia, Broadcom, and AMD, which have shown positive movements leading up to their respective AI events. Marvell's discussion is expected to cover its involvement in a $40 billion total addressable market, focusing on custom application-specific integrated circuits, Arm’s central processing units, and Amazon Web Services’ Trainium2 AI chips.

Micron Technology's Earnings Report in Focus

Micron Technology is set to report its fiscal second-quarter results, with high expectations from analysts due to the company's significant role in AI technology through its High Bandwidth Memory 3E (HBM3E) chip shipments to Nvidia. Analysts from Rosenblatt and TD Cowen have expressed bullish views on Micron, highlighting its potential for a "beat and raise" scenario and its undervalued stock. Citi analyst Christopher Danely has raised his price target for Micron to $150, indicating a 61% upside, based on its increasing AI exposure and strong DRAM pricing.

Analysts' Optimism Amid AI Sentiment

The semiconductor industry is experiencing heightened interest due to the ongoing advancements in AI technology. Companies like Nvidia, Alphabet, and Super Micro Computer have seen their shares rise, with Nvidia's shares adding to their 2024 rally as it kicked off its GTC Conference. The positive sentiment around AI has also benefited Micron Technology, with analysts expecting its upcoming earnings report to serve as a catalyst for stronger future earnings. This optimism is supported by increased shipments of Micron's HBM3E memory chip to Nvidia, which is considered crucial for AI advancement.

Street Views

  • Atif Malik, Citi (Bullish on Marvell Technology):

    "Given this setup, analyst Atif Malik opened a positive catalyst watch on the semiconductor stock ahead of its April 11 event, with its $91 price target implying 33% upside from Tuesday’s close... Nvidia, Broadcom and AMD moved up into their respective AI days and the setup appears similar for MRVL after the recent pullback."