00:00 Speaker a
Meanwhile, Marvell Technology is jumping today following bullish comments from Wall Street, looking at its inventory and as analysts highlight the company's promising AI plans following the custom AI chip event. Welcome to more information now. VivekArya, Senior Semiconductor Analyst at B of A Securities. Vivek, I'm happy to meet you. So let's talk about Marvell, Vivek. I know, listen, you, you are a fan, you have to buy. I think you raised that target, Vivek, to 90. Why? Walk us through it.
00:42 Vivek Arya
Yes, thank you, Josh. Well, I think we've learned a few different things about what's a very positive analyst event. Well, they reconfirmed their multi-year UH, victory roadmap with top three customers from Amazon, Microsoft and Google. Second, they added two new customers, but they didn't name them, but I think they're a lot of these new emerging hyperscalers. And they added many other adjacent products. So now they essentially have 15 shots with goals over the next few years. When they raise the market total forecast by 26% and put it all in the blender, they only meet their growth targets and the company will reach $8 by 2028. So, I know a lot needs to go right, but the big picture is that AI consumption environments are now very strong. This is very good for the big vendors that are Nvidia and Broadcom, but the environment is very strong and offers the opportunity for the next set of vendors. Currently at the cheapest multiple in the group.
02:59 Speaker a
Well, I know that companies like Nvidia, for example, are really indexed to AI right now. How should we think about Marvell regarding AI exposure and other business exposure, and how will that percentage change between this year and next year?
03:27 Vivek Arya
of course. So Julie is spent about $80 on the core computing portion of the cluster, and another $15 on the networking portion of the cluster, if you look at every $100 spent on AI. The networking market is very fragmented and Marvel is a very important player. In fact, their products have been featured in many Nvidia installations where Nvidia is their main computing player. But then double-clicking on the computing part will reveal that $80 for that pie, most of these ready-made or merchant accelerators, and the Nvidia GPU is a very good example of that. But many customers are also very enthusiastic about having custom products after that, right? That is the ASIC market. Well, I think this is around 15-20% of the Accelerator market as a whole, and Broadcom and Marvell. So the point here is, when I take a step back, um, Marvel is a small but very growing player in this market. Well, they're very powerful on the networking and optics side, and have these increased shots on the computing side goal. And then, you put it all together, as you know, there are companies that can increase that topline by 20-25% over the long term just because they have so many opportunities in both computing and networking.
