Marvell Stock Jumps After Unveiling Multi-Billion AI Chip Deals

June 18 - Marvell Technology MRVL rose about 6% on Wednesday morning after Wall Street analysts responded positively to the company's recent custom AI event, citing major design wins and an expanded market outlook.

The chipmaker revealed two new compute-focused XPU projects from hyperscale clients, with additional attach design wins bringing the total to 13, including one with Meta META. Evercore ISI's Mark Lipacis called these multi-billion-dollar lifetime revenue opportunities, potentially ramping up between 2026 and 2027.

Lipacis maintained an Outperform rating with a $133 price target, noting each XPU attach win could generate several hundred million dollars in long-term revenue per socket.

Morgan Stanley's Joseph Moore described the updates as ambitious, but acknowledged the opportunity looked credible. He highlighted Marvell's push to capture 20% of a newly sized $94 billion data center market, with over half of that driven by custom ASICs. Moore kept an Equal-Weight rating with a $73 price target.

Bank of America's Vivek Arya was more bullish, raising his price target to $90 from $80. He said the company's increased 2028 earnings outlook points to potential EPS of $8, roughly 60% above consensus forecasts.

Analysts said Marvell's expanding AI chip pipeline, including ongoing work with Microsoft MSFT on its Maia processor and integration with Amazon's AMZN Trainium3, reinforces its position in the competitive AI infrastructure space.