Marvell Technology (MRVL) has given its investors plenty to cheer about amid a remarkably choppy AI trade.
Shares of the AI giant have surged over 160% in the past six months, according to Seeking Alpha data, as demand for its data center chips has fueled optimism. According to a note shared with TheStreet, after meeting CEO Matt Murphy and CFO Dan Durn, Bank of America’s Vivek Arya sees plenty of reasons to continue doubling down on the stock.
The momentum has continued of late as well. Shares have surged nearly 12% through September 11, while peers like Nvidia (NVDA) shed over 5% in value over the past week.
For perspective, Marvell is involved in building the machinery behind AI. It designs custom processors and the chips that move data between them and allow massive computing systems to work together efficiently.
Its expanded Google partnership, as reported by Yahoo Finance, in particular drew attention, covering chips that support the search giant’s AI infrastructure. Also, that agreement grants Google the right to scoop up Marvell shares at a certain price, contingent on future purchases.
But Arya’s latest comments, following a management lunch, reach beyond a specific customer.
BofA underscored a growing portfolio of products that could deepen Marvell’s role in AI systems. With an October 6 analyst day approaching, investors could soon get an even clearer view of how massive that opportunity could become.
Why BofA is doubling down on Marvell stock
Bank of America has maintained its Buy rating and lofty $365 price target on Marvell stock, implying nearly 55% upside from Marvell’s September 11 closing price near $236.10.
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Analysts led by Vivek Arya base their conviction on how much more technology Marvell could sell within each AI system.
Arya and his team argue that Marvell’s biggest opportunity involves supporting the chips that connect processors, manage memory, and move data. That business is a lot harder for customers to replicate than the processors themselves.
Marvell is already shipping these products to the four major U.S. hyperscalers, and each of its custom processors requires one or two supporting chips, which carry a $500 to $1,500 price tag, creating new opportunities for Marvell to earn revenue from its customers as they expand their compute capacity.
BofA estimates this supporting-chip market alone might exceed $60 billion–$65 billion by 2030. At a projected 40%–50% share, Marvell’s annual sales opportunity could potentially rise to $30 billion, compared to the management’s $3 billion–$4 billion-plus outlook for 2028.
