Marvell Technology (MRVL) has become one of the most talked-about names in tech investing circles, with its share price surging a remarkable 297% over the past year.
The company’s market capitalisation has climbed to $221bn on the back of that extraordinary run, cementing its status as a major force in the AI infrastructure space.
Marvell is now on the verge of entering the S&P 500, a milestone that is expected to drive further buying pressure from large US index-tracking funds.
US broker B Riley reiterated its Buy rating on Friday and lifted its one-year price target from $240 per share to $345, against a current trading price of $279.
If the B Riley target proves accurate, investors buying at today’s price could still see gains of around 24% over the next twelve months.
The company received a powerful endorsement on 2 June when Nvidia chief executive Jensen Huang declared Marvell was set to be the “next trillion-dollar company.”
Huang was sharing a stage with Marvell chief executive Matthew Murphy at a computer conference in Taipei when he made the bullish prediction.
Nvidia has backed that confidence with real capital, pumping $2bn into Marvell in March, saying the investment would help customers “leverage Nvidia’s AI infrastructure ecosystem and scale.”
Huang’s broader argument for the sector was equally direct: “Useful AI has arrived. It’s the reason your demand is going through the roof.”
Marvell’s own financial results support the excitement surrounding the stock, with Q1 revenue climbing 28% year on year to a record $2.42bn.
The company has guided for $2.7bn in Q2 revenue, citing what it described as “exceptional AI-related bookings” driving demand across its product lines.
Data from investment platform AJ Bell shows Marvell has broken into the top 10 most purchased stocks among its UK customers, reflecting growing British appetite for US AI plays.
Some investors have also been drawn to Marvell through indirect exposure, with FTSE 100-listed investment trust Scottish Mortgage having built a position in the broader AI ecosystem since 2018.
Fellow US chip stock Micron Technology has also caught the attention of British investors, posting an even more dramatic 719% gain over the past year and recently crossing a $1trn market capitalisation.
Both Marvell and Micron carry significant risk given stretched valuations and persistent concerns about a potential AI bubble that could unwind gains quickly.
Investors considering either stock would be wise to conduct thorough research before committing capital, as the pace of gains in this sector can reverse sharply when sentiment shifts.