Marvell Technology. Buy, Sell or Hold?

Roth Capital Markets analyst Suji Desilva reiterated a “Buy” rating and $135.00 price target on Marvell Technology (Marvell Technology Stock Quote, Chart, News, Analysts, Financials NASDAQ:MRVL) in a Jan. 7 note, saying the company’s acquisition of privately held XConn strengthens its position in high-performance AI infrastructure connectivity.

Desilva said the deal “boosts the company’s AI infrastructure capabilities in scale-up XPU-XPU connectivity,” expanding Marvell’s reach in a fast-growing segment of the data centre market.

Marvell announced it will acquire XConn for total consideration of about US$540-million, split between roughly US$325-million in cash and the balance in stock. The cash portion represents about 12% of Marvell’s gross cash at the end of the prior quarter.

XConn’s products focus on high-performance switching that sits close to XPUs, managing chip-to-chip traffic, connectivity to memory and storage peripherals, and scale-up XPU-XPU communication. Desilva noted that XConn brings established capabilities in PCIe and CXL memory switching, along with a roadmap toward future protocol generations.

“With this acquisition, we also expect MRVL to better target products that support the emerging AI scale-up UALink standard,” Desilva said.

He added that Marvell expects XConn to begin contributing revenue in the second half of fiscal 2027, with fiscal 2028 revenue ramping to an incremental run rate of about US$100-million. Desilva said the transaction fills out Marvell’s AI infrastructure and connectivity portfolio and should support longer-term growth as AI systems scale across multi-rack and multi-accelerator environments.

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