From Morgan Stanley (MS, Financial) on Friday, Broadcom (AVGO, Financial), Astera Labs (ALAB, Financial), and Marvell Technology (MRVL, Financial) got price target bumps as the company evaluated their prospects for 2025.
Driven by the predominance of artificial intelligence in market trends, Morgan Stanley analysts kept an optimistic view for the semiconductor industry. "Other areas are bottoming out slowly; AI strength now dominates the index weightings," the analysts said in a report.
The research group boosted Broadcom's price target to $265 from $233, Astera Labs to $142 from $94, and Marvell to $120 from $102. Moreover, estimates for Advanced Micro Devices (AMD, Financial) and Nvidia (NVDA, Financial) were marginally changed with Nvidia stock downgraded to $166 from $168 and AMD dropping to $158 from $169.
Reflecting a bullish view, Broadcom, Astera Labs, and Nvidia were rated Overweight; AMD and Marvell were rated Equal-Weight. The analysts shed light on Broadcom's growing customer base and potential for Ethernet expansion in artificial intelligence. The vast spectrum of connection devices Astera Labs offers—used by both merchant and application-specific integrated circuit providers—earned accolades.
Although Morgan Stanley is still wary about Marvell and AMD for now, it emphasized that overall AI prospects are bright and Nvidia is the company's top choice in the field.
