Why Marvell Technology Stock Just Popped
Key Points
Mizuho doubles down on Micron stock today -- with implications for Marvell.
Marvell itself receives three price target hikes and a new buy rating on Wall Street.
Marvell Technology (NASDAQ: MRVL) stock soared 8.4% through 9:55 a.m. ET Tuesday morning on improved sentiment for semiconductor stocks.
You can thank Japanese megabank Mizuho for the boost.
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Mizuho loves memory stocks
Today's first catalyst comes from Mizuho, which this morning reiterated its outperform rating and $800 price target on Micron (NASDAQ: MU). Citing strong demand for computer memory driven by the growth of artificial intelligence, Mizuho predicts the memory market will remain 30% to 50% undersupplied throughout 2026 and 2027.
Demand for high-bandwidth memory, in particular, could drive prices up by 70% to 100% next year, leading to vastly improved profits for Micron.
Micron is, of course, one of the world's leading suppliers of high-bandwidth memory (HBM), which is based on DRAM chips that it manufactures. But here's the thing: While best known for its Application-Specific Integrated Circuits (ASICs), Marvell also has a nice business building custom HBM architecture, enabling "up to 25% more area for compute, 33% greater memory capacity, and a 70% reduction in memory interface power."
In other words, Marvell will almost certainly benefit from increased demand for Micron chips, especially as it collaborates directly with Micron (and SK Hynix and Samsung as well) in this market.
More marvell-ous news for Marvell
Nor is this the only good news for Marvell today. In addition to Micron's boost, Marvell received three price target hikes this morning (from Cantor Fitzgerald, Morgan Stanley, and Susquehanna) and an upgrade to "buy" from HSBC.
HSBC indeed more than tripled its Marvell price target to $300 per share, raised its sales forecast by 21% for fiscal 2027, and by 61% for fiscal 2028! And Cantor predicts Marvell will guide for $15 billion in 2028 revenue.
It's good news all around for Marvell today, and investors have noticed.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology and Micron Technology. The Motley Fool has a disclosure policy.