Marvell Technology's Stock Rises After Solid Earnings

Marvell Technology's stock is on the rise after a strong earnings report. Investors are feeling more optimistic about the integrated circuit maker's future. The company did better than expected in the third quarter and gave a positive outlook for revenue. This good news has led many Wall Street firms to increase their price targets for Marvell's stock. JPMorgan's analyst, for instance, set a new target of $130, which is almost 36% higher than the current price. This increase is due to the company's cyclical businesses doing well and the expected AI and cyclical trends continuing into 2025. The stock has already seen a 59% increase this year as investors show more interest in companies involved in artificial intelligence. The average price target suggests there could be another 17% increase from Tuesday's closing price. Citi's analyst referred to Marvell as the "top custom AI chip play" for 2025 and raised their price target to $112. Morgan Stanley also lifted their target to $102. They both see a strong customer setup for application-specific integrated circuits. Bank of America's analyst upped their target to $125, highlighting a strong product pipeline and dedicated management. They also expect earnings per share to exceed $5 by 2027. While some might worry about gross margin pressure as the mix shifts to custom chips, the overall effect is still positive for operating income and earnings per share.