One Wall Street analyst sees 24% upside for Marvell Technology Stock.

As a result of investors' anticipation that strong demand for artificial intelligence (AI) will improve the company's data center solutions sector, the share prices of Marvell Technology (NASDAQ: MRVL) have rocketed to new highs this year.  

Earlier this week, analysts at KeyBanc kept their overweight (buy) rating on the shares, but they lowered their price objective from $95 to $90. This was done after they took into consideration the possibility that product delays could have a detrimental influence on the growth of the company this year. There is still a nearly 24 percent increase in value over the existing share price, which is represented by the new price objective for the next twelve months or so.  

Is it a good time to purchase Marvell stock? In the most recent quarter, Marvell reported an improvement in growth, which was driven by the robust demand for artificial intelligence in data centers. However, revenue from the data center sector surged by an amazing 54% compared to the same quarter of the previous year, despite the fact that total revenue only increased by 1% year over year.  

On the other hand, KeyBanc pointed out that Marvell might face some delays in the process of ramping up products for Amazon Web Services (AWS), which is a significant supplier for Marvell.  

Additionally, Marvell is a supplier for Nvidia, the leader in artificial intelligence chips, which is developing a new server rack system. However, the disadvantage for Marvell is that Nvidia's GB200 rack does not require optical links during the installation process.  

However, Marvell believes that the implementation of AI will be a significant development driver in the near future. A number of years ago, the corporation made investments in order to get ready for the wave of artificial intelligence.  

It is possible that the company will need to exceed that estimate in order to fulfill the high expectations of investors. The guidance provided by management indicates that the revenue generated by data centers would climb in the low single-digit range during the first quarter of the fiscal year.  

Due to the fact that the company is currently trading at a forward price-to-earnings ratio of fifty, the analyst has decided to reduce its price objective in light of the possibility that the product would be delayed. According to the consensus estimate found on Wall Street, the earnings per share of the company are expected to reach $3.33 within the following two years.  

Given the high price tag attached to the stock, Marvell will need to exceed the expectations of Wall Street in order to generate significant returns from this point forward.  

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