Melius Sets $135 Target on Marvell (MRVL) as Custom Silicon Demand Accelerates

Core Insights - Marvell Technology, Inc. is recognized as one of the best dividend stocks to invest in for January [1] - Melius Research upgraded Marvell to a Buy rating with a price target of $135, citing a significant backlog in custom silicon and expected revenue growth [2] - The demand for AI-focused application-specific integrated circuits (ASICs) is rapidly increasing, positioning Marvell favorably in the market [3] Group 1: Custom Silicon Demand - Marvell's backlog in custom silicon is expected to double by 2027, driven by Microsoft's MAIA chip and the ramp-up of various XPU-attach sockets [2] - Microsoft's internal silicon design capabilities are lagging behind AWS's Annapurna Labs, potentially allowing Marvell to capture a larger share of profits [2] Group 2: ASIC Market Growth - The demand for ASICs is surging, with shipments projected to grow by 45% in 2026, compared to a 16% increase in GPU shipments [4] - Major clients of Marvell include industry leaders such as Alphabet, Amazon, and Microsoft, indicating strong market positioning [4] Group 3: Company Overview - Marvell Technology supplies data infrastructure semiconductor solutions across data centers and network edges, highlighting its comprehensive service offerings [5]