Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Trending AI Stocks on Wall Street. On July 10, Goldman Sachs analyst James Schneider initiated coverage on the stock with a “Neutral” rating and a price target of $75.00.
The firm is cautious on the stock, along with AMD and Arm Holdings. Even though all three are involved in AI, the firm is of the view that they don’t offer the same upside potential right now.
“Our ratings reflect a more negative risk/reward skew on these companies’ shares from current levels, or areas where we see additional downside risk to fundamentals.”
Particularly for Marvell, the firm said that it has AI exposure, but not enough upside right now to recommend buying.
“We initiate on Marvell (MRVL) with a Neutral rating and a 12-month target price of $75. Marvell is a networking solutions provider and an industry leader in optical DSPs. The company has also seen growing traction in its custom compute franchise. We believe the company has demonstrated early success in its custom compute franchise, with deployments at Amazon and recently announced new customer wins at its Custom AI event.
“However, we have only moderate visibility into the shape of the company’s custom compute ramp in CY26. On the positive side, we believe that the company is on a path to recovery in its traditional Enterprise Networking and Carrier businesses. All in, we see a balanced risk/reward profile at these levels. We could be more constructive on the stock if we were to gain better visibility on the company’s ASIC ramp in 2026 and beyond.”
Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.
While we acknowledge the potential of MRVL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.
