Core Insights - Marvell Technology Inc. is identified as a strong investment opportunity for the next five years, despite a recent price target reduction by Cantor Fitzgerald analyst C.J. Muse from $110 to $100, maintaining a Neutral rating on the shares [1][3] Financial Performance - In FQ3 2026, Marvell reported record revenue of $2.075 billion, marking a 37% year-over-year increase, driven by its Data Center segment generating $1.52 billion (up 38%) and Communications business bringing in $557 million (up 34%) [2] - Non-GAAP EPS for the quarter surged 77% annually to $0.76, exceeding sequential expectations by 13% [2] - For FQ4, Marvell targets a revenue midpoint of $2.2 billion, representing a 21% year-over-year growth, with Non-GAAP EPS expected to range between $0.74 and $0.84 [2] Strategic Moves - A significant highlight for Marvell was the acquisition of Celestial AI, aimed at enhancing its optical interconnect and photonic fabric capabilities [3] - The acquisition has already secured a design win with a leading Tier 1 hyperscaler for Celestial AI's photonic fabric chiplets, although meaningful revenue contribution is not expected until H2 FY2028 [3] - Management projects that the optical interconnect technology could eventually reach revenue milestones of $500 million to $1 billion as it becomes critical for future AI scaling [3] Industry Context - The Philadelphia Semiconductor Index/SOX is projected to lead the broader market through 2026, following a strong performance in 2025 where it outperformed the S&P 500 by approximately 30 points [1]

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Best Stocks to Invest in for the Next 3 Years. On December 16, BofA analyst Vivek Arya reduced the price target on the company’s stock to $95 from $105, while keeping a “Neutral” rating on the company’s stock, as reported by The Fly. According to the analyst, the firm has been updating its price targets for U.S. semiconductor stocks under its coverage. BofA Reduces PT on Marvell Technology (MRVL) Stock The firm sees 2026 as the midpoint for the journey ...

Core Viewpoint - Marvell Technology, Inc. (NASDAQ:MRVL) is identified as one of the best stocks to buy and hold for 2026, despite a year-to-date share price decline of over 28%. Analysts maintain a positive outlook with a 12-month price target indicating a potential upside of 43.51% from current levels [1]. Analyst Ratings - Thomas O'Malley from Barclays reiterated a Hold rating on MRVL with a price target of $105 [2]. - Tore Svanberg from Stifel Nicolaus reiterated a Buy rating with a price target of $114 [2]. Company Performance and Positioning - Marvell Technology has demonstrated a significant 45% revenue growth over the past 12 months, positioning itself as a prominent player in the semiconductor industry [3]. - The company offers a comprehensive portfolio of AI infrastructure, providing end-to-end connectivity solutions, which is seen as a unique advantage in the market [3][4]. Strategic Initiatives - The company announced its strategic Golden Cable initiative on December 9, aimed at accelerating the active electric cable ecosystem. This initiative is expected to help hyperscalers deploy AI solutions more rapidly [4]. - The Golden Cable initiative will provide partners with ready-to-use software, tested designs, and support to meet the stringent demands of AI workloads from hyperscalers [4]. Industry Focus - Marvell Technology focuses heavily on the development and production of semiconductors, particularly for data centers [5].

Core Viewpoint - The article discusses the continued potential for growth in AI-powered stocks, highlighting three companies with significant upside for 2026, despite the overall market showing high valuations after strong performance in previous years [2][3]. Group 1: Adobe - Adobe's stock has faced challenges due to concerns about AI's impact on its core products, yet it has shown solid operating results with steady revenue growth driven by customer acquisition and pricing strategies [5][9]. - The company has successfully launched Adobe Express, contributing to a growing user base of over 70 million across its freemium offerings, with a 15% increase in monthly active users (MAU) last quarter [6][7]. - Analysts from Jefferies and DA Davidson have set a price target of $500 for Adobe, indicating a potential upside of 41% from its current price, supported by strong operating results and a forward P/E ratio below 15 [9]. Group 2: Atlassian - Atlassian focuses on enterprise software for project planning and collaboration, serving over 300,000 customers and millions of MAUs, with a successful migration to a cloud-based platform [10][11]. - The company reported a 26% increase in cloud revenue last quarter and a 42% rise in remaining performance obligations, indicating strong growth potential [11]. - Bernstein analyst Peter Weed has set a price target of $304 for Atlassian, suggesting an 85% upside, driven by rapid top-line growth and potential margin expansion [14]. Group 3: Marvell Technology - Marvell Technology specializes in networking chips and custom AI accelerators, collaborating with major companies like Microsoft and Amazon [15]. - Despite recent concerns about competition from Broadcom, Marvell's CEO noted that it has not lost business from key clients, and the company is expected to continue growing in the custom AI accelerator market [18]. - Evercore ISI analyst Mark Lipacis raised Marvell's price target to $156, indicating an 88% upside, supported by strategic acquisitions and a strong position in custom AI solutions [19].

Summary of J.P. Morgan's Semiconductor Research Call Industry Overview - **Industry Focus**: Semiconductors and Data Center Capital Expenditure (Capex) - **Key Companies Discussed**: NVIDIA (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), Marvell Technology (MRVL), Micron Technology (MU) Key Points Data Center Capex Growth - Data center capital expenditure is projected to grow by **65%+ year-over-year (Y/Y) in 2025**, an increase from the previous estimate of **55%** [1] - This growth translates to an **incremental spend of over $115 billion** in 2025 compared to 2024, up from the earlier estimate of **$75-80 billion** [1] - The expected **incremental AI-related revenue** for NVDA, AMD, AVGO, and MRVL in 2025 is projected to be **$85 billion+** [1] 2026 Projections - Data center capex is now expected to track to **50%+ growth in 2026**, revised from **30%** [1] - This implies an **incremental spend of over $150 billion** in 2026, with potential upside to **$175 billion+** if demand continues to surge [1] - The strong demand for AI compute is anticipated to push 2026 data center capex growth into the **60%+ Y/Y range** [1] Company-Specific Insights - **NVIDIA (NVDA)**: Recently announced agreements with OpenAI and Anthropic contribute to a **$500 billion+ revenue backlog** through the end of 2026 [1] - **Broadcom (AVGO)**: Market misinterpretation of management's comments on a **$73 billion backlog** due to lead times [1] - **Marvell Technology (MRVL)**: Likely upside from AWS orders for Tranium3 [1] - **Advanced Micro Devices (AMD)**: Anticipated announcements regarding significant customer engagements in the next 6-9 months [1] Market Dynamics - The spending environment is expected to support a **40-50% compound annual growth rate (CAGR)** for the AI accelerator total addressable market (TAM) off a **$200 billion base in 2025** [4] - Strong AI server spending is projected to benefit companies like NVDA, AVGO, MRVL, AMD, and Micron [4] Future Visibility - While visibility into data center capex beyond 2026 is limited, current expectations suggest a **~10% Y/Y growth** in 2027 if spending remains flat [1] Additional Insights - The report emphasizes the importance of not solely focusing on traditional hyperscalers, as significant spending is also occurring with neoclouds and sovereign AI projects [4] - The analysis indicates that the semiconductor sector is well-positioned to capitalize on the ongoing AI demand, with several companies highlighted as top picks in the AI/cloud space [4] Conclusion - The semiconductor industry, particularly in the context of data center capex, is poised for significant growth driven by AI demand, with key players like NVDA, AMD, AVGO, and MRVL expected to benefit substantially from this trend [1][4]

Summary of J.P. Morgan Semiconductor Conference Call Industry Overview - The semiconductor industry is projected to reach a value of $770 billion by CY25, with a compound annual growth rate (CAGR) of 7-8% [9][10] - The industry is experiencing lower cyclicality due to end-market diversification and disciplined supply growth, which enhances profitability and free cash flow expansion [9][10] - Key drivers of growth include cloud datacenters, electric vehicles (EV), Internet of Things (IoT), and artificial intelligence (AI) [9][10] Stock Performance - Semiconductor stocks have outperformed the market over various time frames, with the SOX (Semiconductor) Index showing a 29% return over the past year and a 42% return over three years [7][8] - Semiconductor capital equipment stocks have also shown strong performance, with a 22% return over the past year [7][8] Revenue and Earnings Outlook - Industry revenue growth is expected to accelerate to 15-20% in 2025, following a 6-8% increase in CY24 [11] - Preliminary outlook for 2026 indicates semiconductor revenues will increase by 10-15%, with wafer fabrication equipment (WFE) up 10-12% and software up 10-15% [11] - Positive earnings revisions have been noted for approximately 75% of covered semiconductor companies in 2025, compared to 40% in 2024 [12] Market Dynamics - The last four down-cycles in the semiconductor market have been demand-driven rather than supply-driven, indicating a more disciplined approach to supply expansion [11] - Geopolitical uncertainties, potential global tariffs, and export restrictions are identified as key risks that could affect recovery in 2026 [11] Key Company Insights - Large-cap top picks include AVGO (Broadcom), ADI (Analog Devices), MRVL (Marvell), MU (Micron), KLAC (KLA Corporation), and SNPS (Synopsys) [11] - Small and mid-cap top picks include ALAB (Alphawave), MTSI (Macom Technology Solutions) [11] Custom ASIC Market - The custom ASIC market is experiencing a resurgence, with a projected $30 billion opportunity in CY25, growing at a CAGR of over 30% [35] - Broadcom and Marvell are expected to dominate this market, with Broadcom projected to drive over $55 billion in total AI revenue in FY26 [35] AI Demand and Infrastructure - AI chip shipments are expected to grow at a CAGR of over 58% from 2022 to 2028, with AI ASICs projected to account for over 50% of overall XPU unit shipments by CY28 [28] - Cloud and hyperscale data center capital expenditures are expected to grow by 50% year-over-year in CY26, driven by aggressive product roadmaps from GPU providers and internal custom silicon deployments [32] Inventory Levels - Semiconductor inventory levels are approaching normalized levels after significant drawdowns from peak levels in 2023, indicating positive cyclical dynamics [22][20] Conclusion - The semiconductor industry is poised for continued growth driven by technological advancements and increasing demand for AI and custom chips, despite potential geopolitical risks and market volatility [9][11][35]

J P M O R G A N North America Equity Research 16 December 2025 Semiconductors/Semi Cap Equipment 2026 Outlook: Expect Another Year Of Stock Outperformance; Continued Strong AI Spending And Accelerating Cyclical Recovery In Industrial/Auto; Favor AVGO, MRVL, ADI, MU, KLAC, SNPS Heading into 2026, we maintain our view that long-term investors should continue to focus on the multiyear (1,3, 5,10,15, 20-year) track record of semis stock outperformance driven by (1) the crucial role semis play in the tech value ...

Group 1 - The article discusses Kennedy's investment philosophy, which focuses on GARP (Growth at a Reasonable Price) and emphasizes investing in companies with aggressive growth prospects that are expected to become highly profitable within 1-2 years [1] - Kennedy's approach includes long-term discipline, consistent alpha generation, and a consideration of risk, indicating a balanced investment strategy [1] - The article highlights Kennedy's commitment to empowering the underprivileged and improving financial literacy through his investment insights [1]

Investment Philosophy - The investment philosophy focuses on GARP (Growth at a Reasonable Price) with a preference for companies that exhibit aggressive growth potential and are expected to become highly profitable within 1-2 years [1] - Emphasis is placed on long-term discipline, consistent alpha generation, and a calculated approach to risk [1] Social Impact - The objective includes empowering underprivileged communities and enhancing financial literacy [1] Analyst's Position - The analyst holds a beneficial long position in MRVL shares through various financial instruments [1]

Core Viewpoint - Coatue Management, led by Philippe Laffont, is adjusting its investment strategy in the AI sector by reducing stakes in Nvidia and AMD while increasing investments in Alphabet and Marvell Technology, indicating a shift towards a broader semiconductor opportunity in AI infrastructure [2][12][14]. Group 1: Investment Moves - During Q3, Coatue Management reduced its exposure to Nvidia by 14% and AMD by 19% [2]. - The fund significantly increased its stakes in Alphabet and Marvell Technology, tripling its investments in both companies [2]. Group 2: Market Dynamics - Nvidia and AMD are leading the AI chip market, with their shares increasing by nearly 900% and 200% respectively during the AI revolution [3]. - McKinsey & Company forecasts that AI infrastructure investment will reach nearly $7 trillion over the next five years, primarily for data centers and chip procurement [6]. Group 3: Company Insights - Alphabet's cloud infrastructure, particularly Google Cloud, is attracting major clients like Anthropic, OpenAI, and Meta Platforms, enhancing its market position [7]. - Alphabet's custom-designed AI processors, known as Tensor Processing Units (TPUs), are becoming integral to its AI ecosystem [8]. - Marvell specializes in high-bandwidth memory computing stacks and other essential hardware for data centers, positioning itself well in the AI market [9][10]. Group 4: Strategic Outlook - The semiconductor opportunity is expanding beyond general-purpose chips, with a focus on specific segments like memory storage and custom chipsets [11][14]. - Laffont's strategy reflects a structural shift rather than a negative sentiment towards AI GPUs, indicating a bullish outlook on the growth of AI infrastructure [12][14]. - A diversified portfolio across GPUs, custom chipsets, and memory architecture is expected to be a successful long-term investment strategy [15].