Marvell (MRVL) Gets Strong Buy as Raymond James Backs XConn Acquisition

Core Viewpoint - Marvell Technology, Inc. is actively pursuing growth in the AI sector through strategic acquisitions, specifically the planned acquisition of XConn for $540 million, which is expected to enhance its AI data center connectivity solutions [1][2][4]. Group 1: Acquisition Details - Marvell announced its intent to acquire XConn, a provider of PCIe and CXL switching silicon and UALink technology, for approximately $540 million [2]. - The acquisition is aimed at strengthening Marvell's switching portfolio and enhancing its Ultra Accelerator Link (UALink) scale-up switch team [2][4]. - Marvell's Chairman and CEO, Matt Murphy, emphasized that this combination will create a compelling switching platform for accelerated infrastructure, advancing the company's connectivity strategy for next-generation AI and cloud data centers [3]. Group 2: Analyst Insights - Raymond James analyst Simon Leopold reiterated a Strong Buy rating on Marvell with a price target of $125.00, indicating confidence in the company's growth potential following the acquisition announcement [1]. - The firm views the acquisition favorably, noting that XConn's technology can enhance Marvell's market reach and complement its xPU/ASIC offerings [4]. - Despite the acquisition, Raymond James is not adjusting its estimates for Marvell at this time, as XConn is described as an early-stage company [4].