RBC Just Lifted Marvell's Target From $115 to $170 After Amazon's Blockbuster Anthropic Deal

"RBC's thesis is straightforward: when Amazon commits to powering Anthropic's AI ambitions at a scale of up to $25 billion in investment and over $100 billion in AWS spending over the next decade, infrastructure suppliers win big."

"Marvell provides custom silicon and networking solutions that make hyperscale AI compute possible. The Amazon-Anthropic agreement includes access to Trainium2, Trainium3, and Trainium4 chips alongside Graviton CPUs, all requiring the high-speed interconnect and custom ASIC work where Marvell competes."

"In its most recent quarter, revenue reached $2.074 billion, up 37% year over year, with data center revenue of $1.518 billion representing 73% of the total."

RBC Capital Markets increased Marvell Technology's price target from $115 to $170, maintaining an Outperform rating. The increase is attributed to Amazon's landmark deal with Anthropic, which includes substantial AWS capacity. This agreement is expected to benefit Marvell as a key supplier. RBC's analysis indicates a strong outlook for AWS suppliers, with Marvell's custom silicon and networking solutions positioned to capitalize on the growing demand for AI infrastructure. Marvell's recent revenue growth and positive management guidance further support this optimistic forecast.

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