Marvell Technology, Inc. (MRVL.US) sees a new catalyst for growth? HSBC shouts "super cycle" is coming! Citi, BoA, and others collectively raise target prices.

On Tuesday, Marvell Technology, Inc. (MRVL.US) will announce its latest quarterly results on Thursday morning Beijing time (after the U.S. stock market closes on Wednesday). Prior to this, Wall Street analysts have been raising their target prices for the company. HSBC analyst Frank Lee has upgraded Marvell Technology, Inc.'s rating from "hold" to "buy" and raised the target price from $85 to $300, citing the "super cycle" in artificial intelligence networks, making the company the focus of attention. Lee wrote in a report to clients, "Although Marvell Technology, Inc. stock has rebounded by 124% since March 30, and its upcoming first quarter fiscal 2027 earnings report is unlikely to bring major positive news, we believe the market is still underestimating the revenue growth of the optical interconnect business, which will lead to a general expectation of upside in the market over the next two years. In addition, we believe that the ongoing memory shortage associated with artificial intelligence CPU demand may lead to an increase in the potential total addressable market (TAM) of high-speed computing links." Lee further stated that he believes Marvell Technology, Inc. will become a "major beneficiary" as artificial intelligence clusters expand to multi-rack artificial intelligence factories, driving the transition to optical interconnects. Marvell Technology, Inc. is seizing this opportunity with its leading position in the 800G and 1.6T digital signal processor (DSP) field, these DSPs being the 'brains' of these high-speed optical modules. Marvell Technology, Inc. dominates the DSP market, and with a 1:1 attachment rate with optical transceivers, we believe it can at least maintain synchronous growth with the industry average." Citigroup Inc. analyst Atif Malik raised Marvell Technology, Inc.'s target price from $118 to $215, an 82% increase, while reiterating a "buy" rating and noting that the market's demand for Amazon.com, Inc.'s Trainium 2 AI accelerator is the core driver of its profitability. Marvell Technology, Inc. collaborated with Amazon.com, Inc.'s web services division to design the Trainium 2 chip, establishing a direct and deepening revenue relationship with one of the world's largest AI spenders. Based on the same argument, Wells Fargo & Company raised Marvell Technology, Inc.'s target price from $135 to $195, citing the impending significant expansion of AWS Trainium and pointing out existing backlogged orders related to the product amounting to $225 billion. Wells Fargo & Company predicts that Trainium-related revenue could reach $6 billion in 2027 and 2028, with the potential for higher revenue if prices increase. Stifel also raised Marvell Technology, Inc.'s target price from $140 to $210 and maintained a "buy" rating. The firm's analyst stated that the company's collaboration with NVIDIA Corporation and the increase in capital expenditure for ultra-large-scale data centers have strengthened Marvell Technology, Inc.'s growth momentum in the data center sector, and they expect the company to exceed expectations when announcing quarterly results. Additionally, Morgan Stanley and Susquehanna have respectively raised Marvell Technology, Inc.'s target price from $103 and $100 to $172 and $230. On May 13, Bank of America Corp. Securities significantly raised Marvell's target price from $125 to $200, maintaining a "buy" rating and listing it as a "preferred stock." Wall Street's unanimous rating for Marvell Technology, Inc. is "strong buy," based on 23 "buy" ratings and 4 "hold" ratings issued in the past three months. The stock has already risen by over 130% this year, and about 109% since January, raising the question of whether this upward trend will continue or if the market has already absorbed the upside potential. This week's first quarter earnings report will be released, with the market focusing on whether the momentum in Trainium's development can indicators strong enough to support the multiple target price upgrades by analysts.