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JP Morgan Raises Its Price Expectations for This Tech Stock (MRVL) And 70 Hedge Funds Already Own It – Should They?

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It has been said that “imitation is the most sincere form of flattery.” While that fact may have once applied to fashion designers who follow and copy the hottest new trends in clothing, it may apply to investors as well. Stockbrokers are notorious for imitating successful investment strategies and if you’re one of them, JP Morgan’s recent development of Marvell Technology might interest you. Seventy hedge funds are also invested in this stock. Read on to find out why.

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Marvell Technology (Nasdaq: MRVL ) is one of many companies that have thrived in the ecosystem created by the AI ​​revolution. The company makes high-performance semiconductors intended to serve data centers. It’s no secret that the race is on to see which Big Tech outfit can build the smartest, fastest and most reliable AI. Data centers and semiconductors are key factors in that race.

As Marvell Technology’s products help data centers store large amounts of information and access that data more efficiently, it is poised to participate in the continued development of AI. JP Morgan analyst Harlan Sur certainly thinks so. He recently raised his price target for Marvell from $90 to $130, predicting that the stock will rise nearly 50%.

See Also: Deloitte’s fastest growing software company partnering with Amazon, Walmart & Target announces this year’s investment deadline of 12/20. – Last Chance to get 4,000 pre-IPO shares for only $0.26/share!

Sur’s advance on Marvell was driven in part by the extent to which the company’s strong Q3 2024 exceeded analysts’ expectations. Marvell reported sales of $1.52 billion, a significant improvement over the analyst consensus of $1.46 billion. A large part of Marvell’s increase in sales is due to the popularity of its high-end AI chips among hyperscale data center builders.

Hyperscale data centers are key assets in the effort to harness the power of AI and several tech titans are actively building them. In Marvell’s Q3 2024 earnings call, CEO Matt Murphy revealed that his company has received deals to supply semiconductors for hyperscale data center projects by Google and Amazon. This should translate into more open market share and stronger long-term revenue for Marvell.


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