Marvell Stock (MRVL) Gains as Citi Adds to Upside Catalyst Watchlist

Marvell Technology's stock (NASDAQ:MRVL) is showing positive momentum in pre-market trading, up 2.5%, following a significant pullback from the $100 resistance level in December. This uptick follows Citi's decision to add an “upside 30-day catalyst watch” on Marvell shares ahead of the Consumer Electronics Show (CES).

The markets reacted favorably as Citi analysts indicated that concerns surrounding XPU competition at two major hyperscale customers are “misguided,” suggesting that the post-earnings selloff presented a buying opportunity.

Marvell is expected to highlight the growing adoption of scale-up networking at CES, potentially boosting investor sentiment and driving further gains, with the firm reiterating a Buy rating and a $114 price target.

Marvell's strategic positioning in the AI market is a key factor influencing analyst sentiment. The company's recent third-quarter fiscal 2026 results showcased a strong performance, with record revenue of $2.08 billion, a 37% year-over-year increase, and non-GAAP earnings per share of $0.76, exceeding analyst expectations.

Simultaneously, the company announced the acquisition of Celestial AI for $3.25 billion in cash and stock, with potential additional payments up to $5.5 billion based on revenue milestones. This move is aimed at bolstering Marvell's capabilities in AI data center connectivity, a sector poised for significant growth.

Despite the positive developments, Marvell's stock has experienced volatility. A recent downgrade by Benchmark analysts to “Hold” reflected concerns that Marvell may have lost custom XPU contracts for Amazon's upcoming Trainium 3 and 4 chipsets to competitors. This downgrade contributed to a notable stock decline of approximately 9.2%. However, Marvell's management has addressed these concerns, with CEO Matt Murphy affirming that the company did not lose contracts with Amazon and Microsoft, reassuring the markets about its competitive position.

Furthermore, Marvell's strategic initiatives, such as the launch of the Golden Cable initiative to accelerate the adoption of active electrical cables (AECs) in hyperscaler AI deployments, underscore its commitment to innovation and market leadership.

After recent meetings with Marvell's leadership team, Citi has expressed increased conviction that Marvell will see accelerating sales growth in 2026 and 2027, driven by the expanding artificial intelligence data center market.

Currently trading around $84.09, Marvell's stock remains down -25.95% year-to-date, reflecting the challenges and uncertainties it has faced. However, Citi's renewed confidence and Marvell's strategic moves in the AI space suggest a potential for recovery. The markets will be closely watching Marvell's presentation at CES and its ability to capitalize on the growing demand for AI infrastructure.