Shares of Marvell Technology Inc. ( MRVL ) rallied in early trading on Wednesday, after the company hosted its Custom AI Investor Event on Tuesday.

Needham analyst Quinn Bolton maintained a Buy rating and price target of $85.

JPMorgan analyst Harlan Sur reiterated an Overweight rating and price target of $130.

Check out other analyst stock ratings.

Needham: Marvell ( MRVL ) indicated that it estimates its Data Center TAM (total addressable market) at $94 billion in 2028. That’s up from its previous projection of $75 billion. All four subsegments of the division are expected to contribute to this growth, Bolton said in a note.

Marvell ( MRVL ) introduced ‘Custom XPU attach', which represents "an increasingly strategic portion of its Data Center TAM," growing at a CAGR (compounded annual growth rate) of 90% from 2023-2028, "significantly outpacing the 47% CAGR of the Custom XPU segment. "We see Custom XPU attach as a particularly rich opportunity for MRVL given its networking and processing background," he further wrote.

JPMorgan: Marvell ( MRVL ) presented a "compelling and sustainable growth strategy for its AI datacenter networking/ASIC business," Sur said. With new design wins confirmed, the company now has design wins for 18 multi-generational sockets, "which should help drive its ASIC AI silicon market share to 20% by 2028," he added.

"The team is driving strong product innovation and investing in sustaining its leading-edge technology, given its strong R&D scale ($2B+ per year)," the analyst wrote. If Marvell ( MRVL ) executes well on its datacenter growth strategy and captures 20% of the datacenter TAM opportunity by 2028, there could be "significant upside' to its stock, he further stated.

Price Action: Shares of Marvell Technology ( MRVL ) had risen by 8.36% to $75.84 at the time of publication on Wednesday.

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