Marvell Technology (NASDAQ: MRVL) stock posted gains in Wednesday's trading thanks to bullish coverage from an analyst. The company's share price ended the day up 3.5% amid a 0.2% gain for the S&P 500 (SNPINDEX: ^GSPC) and a flat day of trading for the Nasdaq Composite (NASDAQINDEX: ^IXIC).
Before the market opened this morning, Bank of America Securities published new coverage on Marvell. The firm reiterated its buy rating and one-year price target of $150 per share on the stock. As of this writing, BofA's new target suggests additional upside potential of roughly 35%.
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Marvell stock rises on bullish analyst outlook
Bank of America's Vivek Arya is pounding the table on Marvell stock again. The firm's lead analyst on the stock sees the company continuing to benefit from artificial intelligence (AI) trends and expects that the business will post better-than-expected results for the fourth quarter of its 2025 fiscal year -- a period that concluded at the end of January.
Arya sees Marvell continuing to gain share in the AI market and expects that the business will benefit from demand for AI optics hardware and application-specific integrated circuits (ASICs). In addition to Q4 results that beat the average Wall Street analyst estimates, the analyst also thinks that the company's management will serve up better-than-expected guidance for the current quarter.
What's next for Marvell?
Marvell is scheduled to publish its fiscal Q4 results after the market closes on March 5, and BofA expects the company will post results that crush the market's expectations. While the average analyst estimate is calling for AI sales of $737 million, the firm is anticipating revenue of $860 million.
Even better, Arya expects sales growth for AI-related products will accelerate substantially in the current quarter, forecasting category revenue of $900 million for the period. While there's no guarantee Marvell's AI sales will hit the analyst's targets, the company is racking up some big wins in the category -- and the stock looks like a smart buy for risk-tolerant investors seeking exposure to AI hardware trends.
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Bank of America is an advertising partner of Motley Fool Money. Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bank of America. The Motley Fool recommends Marvell Technology. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
