Marvell’s AI Story Just Got Stronger With Google — But Is it Too Late to Buy?
Marvell's shares surged 96% in three months after the company won a deal with Google to work on a next-generation tensor processing unit. The deal strengthens Marvell's narrative as a custom silicon partner, but its valuation at 51.2 times trailing price-to-earnings is considered pricey.
Marvell's shares have risen 96% in three months after the company secured a deal with Google to develop a next-generation tensor processing unit. Marvell is becoming a significant player in custom silicon, competing with Broadcom. The company's technology is seen as crucial for advancing AI infrastructure, with innovations in optical networking and memory efficiencies. Marvell's credibility as a custom silicon partner has increased, but its valuation is now considered expensive at 51.2 times trailing price-to-earnings. Analysts like Rick Schafer of Oppenheimer maintain a positive outlook on Marvell, with a price target of $170.00 per share. The company's growth potential is tied to the expansion of AI infrastructure and the spending of mega-cap tech companies.
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