TSP Weekly Tech Stock Update—Jan 18, 2025
This Week: Marvell shares rally sharply, TEAM boosts prices, Cantor positive on SNOW, Citi upgrades MNDY, a new MDB bull, Morgan Stanley likes OS, Zscaler shakes up SecOps, GTLB's AI upside & more.
Hello from Rob…
—Shares of chipmaker Marvell Technology (MRVL, $124.76) this week jumped 9.1% on AI optimism. So far this month, the stock is up 12.9% versus a gain of 2.5% for NVIDIA (NVDA, $137.71).
Last March, when the shares were trading around $75.50, I wrote about Marvell’s expanding AI opportunity. Back then, BofA had just raised its Marvell price target to $95 based on strong growth in the company’s datacenter business.
In FQ3 (Oct.), datacenter was Marvell’s largest end market, driving 73% of total revenue. For FQ4 (Jan.), the company is forecasting datacenter sequential growth in the low-to-mid 20% range, powered by a significant step-up in custom AI revenue, as these programs continue to ramp into high-volume production.
This week, BofA boosted its Marvell target to $150, saying it sees increased potential for the company in compute with custom silicon and optics over the next few years.
In December, Cantor Fitzgerald raised its price target to $135 based on continued substantial momentum for the current AI Supercycle. The firm sees Marvell’s FY’25 (Jan.) AI revenue tracking to $1.8 billion to $2 billion, with $5 billion expected for FY’26.
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