Marvell (MRVL) shares are up nearly 7% at the time of writing after a JPMorgan analyst issued a positive note in their favor following the company’s Custom AI investor event on Tuesday. 

Analyst Harlan Sur reiterated his “Overweight” rating on the semiconductor giant this morning, saying its shares could climb further to as much as $130 over the next 12 months. 

Sur’s bullish call on Marvell stock is significant given it’s already up nearly 60% versus its year-to-date low set in early April. 

Here’s Why JPMorgan Remains Bullish on Marvell Stock

JPMorgan recommends sticking to MRVL shares despite their cosmic run over the past two months primarily because it outlined a “compelling and sustainable growth strategy for its AI datacenter networking and ASIC business” at the investor event. 

Marvell now has contract wins for 18 multi-generation chip slots, which could help boost its share of the AI ASIC market to 20% over the next three years, Harlan Sur told clients in a research note today. 

He remains positive on the semiconductor stock because its management is investing aggressively (more than $2 billion per year on R&D) to drive innovation and keep its technology ahead of the competition.  

MRVL Shares May Still be Trading at a Discount

Investors should also note that the risk-reward profile on Marvell stock, despite its recent rally, remains rather compelling. Shares are currently trading at a price-sales multiple of 10.55x only. 

In comparison, other leading semiconductor stocks like Nvidia (NVDA) and Broadcom (AVGO) are going for well over 20 times each at writing. 

MRVL shares are worth owning at current levels also because the company has partnered with Empower Semiconductor on integrated power solutions for its custom silicon platforms. 

This strategic partnership strengthens Marvell’s position in next-gen XPUs, which may eventually improve its appeal to hyperscalers. 

What’s the Consensus Rating on Marvell Technology?

Note that JPM is not alone in keeping bullish on Marvell stock following its AI event on Tuesday. 

The consensus rating on MRVL shares remain at “Strong Buy” with the mean target of about $91 indicating potential upside of another 20% from current levels.