Marvell’s Stock (MRVL) Labelled a ‘Top Idea’ as Rally Continues

Marvell Technology's stock (NASDAQ: MRVL) has been called a ‘top idea' by Craig Hallum, as the analyst firm raised it's price target to $149 from $132. Marvell has started 2025 with a 7.7% gain, off the back of delivering an increase of 19.2% rise in December. With custom silicon firms becoming somewhat of a trend towards the end of last year, many are anticipating a continued push through the year ahead.

Also to raise price target yesterday were Stifel, pushing their own mark out to $130 (from $125) whilst maintaining a Buy rating.

Operationally, Marvell reported a year-over-year fiscal third-quarter revenue growth of 7%, reaching $1.52 billion. Alongside this, its adjusted earnings per share rose 5% to $0.43, reflecting robust financial performance during this period.

The most notable growth was seen in Marvell's data center segment, which grew an impressive 98% year-over-year. This segment has now become a major revenue driver, constituting 73% of the company's total revenue, a substantial increase from 39% the previous year.

Looking forward, Marvell has shown confidence in its continued growth by guiding for $1.8 billion in revenue for the current quarter, which would represent a 19% sequential increase. This bullish outlook has likely contributed to increased investor confidence and the resultant stock price surge.

Additionally, Marvell announced a five-year collaboration deal with Amazon for AI data center infrastructure. This partnership underscores Marvell's strategic positioning in the growing AI and data center markets. The company also introduced innovations like a new memory interface for ASICs—aimed at enhancing high-bandwidth memory speed and efficiency—and the first 1.6 terabyte-per-second PAM4 digital signal processor dedicated to AI communications. These advancements highlight Marvell's commitment to innovation and leadership in technological development.