Marvell's stock surged 7.27% after KeyBanc raised its price target to $385 from $260, citing strong positioning in AI data center networking and the planned Celestial AI acquisition.

What happened: KeyBanc maintained an Overweight rating on Marvell Technology and lifted its price target to $385 from $260, implying 26% upside from Thursday's close. The firm said recent investor meetings left it more constructive on Marvell's data center networking opportunity, with AI networking highlighted as a central theme in the company's growth outlook.

Why it matters: Data center networking is expected to become a more important focus for investors and is seen as more durable compared to custom chips. Marvell's planned acquisition of Celestial AI—which uses light instead of copper wiring to connect AI processors and memory—is positioned as a long-term differentiator that could help the company stand out from competitors in the artificial intelligence infrastructure boom.

What to watch: KeyBanc's bull case sees Marvell rising to $450 (about 43% above Thursday's close), contingent on stronger-than-expected custom silicon ramps, higher AI-driven demand for its networking business, and faster integration of new subsidiaries. Broader Wall Street sentiment is constructive: 38 of the 44 analysts covering MRVL rate it 'Buy' or 'Strong Buy.'