New York, January 15, 2026, 14:20 EST — Regular session
- Marvell shares climbed roughly 1% in afternoon trading following RBC’s launch of coverage with an Outperform rating
- After TSMC reported strong earnings and outlined spending plans, chip stocks surged broadly
- Investors are closely tracking whether hyperscaler AI chip demand sustains and anticipating the upcoming earnings report
Shares of Marvell Technology climbed about 1% to $82.04 on Thursday after RBC Capital Markets kicked off coverage with an Outperform rating and a $105 price target. The boost comes as RBC highlights strong demand linked to data centers and custom chips for major cloud clients. Analyst Srini Pajjuri described management’s fiscal 2028 revenue forecast—below $1 billion—as “conservative.” (Investing.com)
The call comes at a sensitive time for the stock. Investors are wrestling with how lasting Marvell’s largest data-center deals really are, and if the company can iron out the uneven order flow tied to a handful of major clients.
The semiconductor sector got a boost after Taiwan Semiconductor Manufacturing Co reported solid earnings, sparking hopes for increased AI-driven spending. Chip stocks rallied, pulling the broader market out of a two-day slump. (Reuters)
The iShares Semiconductor ETF and VanEck Semiconductor ETF each climbed roughly 3%, outstripping the broader market’s advance. Nvidia and Broadcom, key indicators of AI infrastructure demand, also rose in late trading.
RBC highlighted “firm orders” connected to Amazon Web Services’ Trainium3 program and noted Marvell’s recent advances in photonics position it well for the next-gen Trainium4 chips. The firm described Marvell’s optical segment as “on solid footing” and labeled scale-up networking alongside custom SmartNICs as “underappreciated” growth drivers.
Some of those terms could use a quick decode. An ASIC is an application-specific integrated circuit—a custom chip designed for a particular client or job. Trainium, meanwhile, is Amazon’s own AI accelerator, powering AWS data centers. SmartNICs are network cards that take on tasks from the main server processor, a small but crucial piece when data centers get packed tight.
There’s still a definite risk angle. A note highlighted by The Fly from RBC calls the Trainium 3 debate “settled” and expresses strong confidence in the Trainium 4 opportunity. But it also labels Microsoft’s XPU push as a wildcard, noting company guidance factors in only a modest impact by 2027. (TipRanks)
The macro environment can shift quickly. TSMC CEO C.C. Wei warned the company is “very nervous” about investing at this level and emphasized that spending must be managed cautiously — a clear sign that the AI surge remains a capex play, and those budgets can be trimmed. (Reuters)
Marvell aims to deepen its stake in the infrastructure of AI data centers, moving beyond just chip production. Earlier this month, it announced plans to acquire XConn Technologies for roughly $540 million in a combined cash-and-stock deal, highlighting the company’s tech as key for high-speed switching in AI setups. (Reuters)
In December, Marvell unveiled a $3.25 billion acquisition of photonics startup Celestial AI. This deal thrust the chipmaker into the competition to develop faster, more energy-efficient connections between chips in AI servers. (Reuters)
What comes next won’t fit neatly into one headline. Markets are focused on chip-equipment earnings, with ASML’s results expected January 28 seen as a key test of whether the recent spending surge has legs. Traders are also waiting on Marvell, which the Nasdaq calendar lists with a tentative report date of March 4. (Reuters)
