Shares of semiconductor company Marvell Technology (MRVL) jumped by 6.08% intraday on May 26, after the company received an upgrade from HSBC. Analysts at HSBC lifted Marvell’s rating from “Hold” to “Buy” and raised the price target from $85 to $300 (indicating a 44.1% upside from current levels), citing a “supercycle” related to AI networking.
Analyst Frank Lee believes that revenue growth from optical interconnect is still being underestimated by the market, with the technology being potentially an upside driver to consensus forecasts over the next couple of years. In addition, the memory shortage affecting agentic AI CPUs could lead to more upside. The analyst expects Marvell to be a “key beneficiary” as AI clusters mature into AI factories, thereby raising the importance of optical interconnects.
