This article first appeared on GuruFocus.
Marvell Technology (NASDAQ:MRVL) shares climbed nearly 5% on Wednesday after analysts cited increased demand for AI optics and UBS lifted its price target.
UBS analyst Timothy Arcuri kept a buy rating and raised his target to $110 from $105, citing strong optics traction and early custom-chip wins with Microsoft (NASDAQ:MSFT).
The chip maker, which supplies data-center and networking processors, is set to report third-quarter fiscal 2026 results on Dec. 2.
MRVL has struggled this year and is trading about 34% below previous levels amid USChina trade uncertainty and intensified competition in the AI chip sector.
Street models estimate Q3 EPS to be $0.74, representing about a 72% year-over-year gain, and revenue to be near $2.07 billion, representing nearly 36% growth.
HSBC’s Frank Lee initiated coverage with a Hold and a $85 target, noting Marvell’s underwhelming Asia performance and questioning the sustainability of its ASIC strategy compared to larger rivals.
Investors will be examining management’s Q4 guidance, Optics shipments and cloud customer wins. Near-term geopolitics and valuation metrics could shape stock reaction post-print.
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