This article first appeared on GuruFocus.

Marvell Technology (NASDAQ:MRVL) shares climbed about 5% on Wednesday after analysts pointed to rising AI optics demand and UBS lifted its price target.

UBS analyst Timothy Arcuri kept a Buy rating and nudged his target to $110 from $105, citing stronger optics traction and early custom-chip wins with Microsoft (NASDAQ:MSFT).

The chipmaker, which supplies data-center and networking processors, is set to report third-quarter fiscal 2026 results on Dec. 2.

MRVL has struggled this year and trades about 34% below prior levels amid U.S.China trade uncertainty and sharper competition in the AI chip space.

Street models forecast Q3 EPS of $0.74, roughly a 72% year-over-year gain, and revenue near $2.07 billion, implying about 36% growth.

HSBC’s Frank Lee began coverage with a Hold and an $85 target, noting Marvell’s heavy Asia exposure and questioning the durability of its ASIC strategy versus larger peers.

Investors will scrutinize management’s Q4 guidance, optics shipments and cloud customer wins. Near-term geopolitics and valuation metrics may shape stock reaction after the print.