This chip stock offers a threefold upside potential, according to Mizuho

According to Investing.com — Mizuho analysts, Marvell Technology offers investors three times more upside chances over the next 12 months than downside risk. Analysts stress that the chipmaker is undervalued, despite short-term concerns about its business with Amazon.

Marvell stock, which trades at around $73, has lagged behind the broader semiconductor sector this year, the brokerage said. He said investor interest was low due to concerns that rival Alchip was taking a stake in Amazon's private artificial intelligence chip program.

However, the company's strong optics business and growth outlook justify higher confidence.

At current levels, Marvell is trading at 26 times its forecast 2026 earnings and 20 times 2027, which Mizuho finds attractive given the expected earnings growth. Consensus forecasts of $2.80 per share for 2026 and $3.60 per share for 2027 are seen as achievable.

Mizuho noted that most investors prefer exposure to Nvidia, Taiwan Semiconductor and Broadcom, while Advanced Micro Devices is seen as a cleaner alternative to Marvell.

But Mizuho said Marvell's relative underperformance (the stock is up 15% since April, while the semiconductor index is up 37%) is positioned for stronger gains if sentiment changes.

On the subject of Nvidia, Mizuho expects little new information from the upcoming results and predicts that its revenue guidance will likely be around $55 billion. He pointed to uncertainty about the company's sale of H20 chips to China. Despite this, he noted that approval for newer B30 products could offset that over time.

Although Nvidia traded near record levels, Mizuho called it one of the strongest stories in technology. He stressed that demand for its GPUs has greatly exceeded supply, and that the new Blackwell and Ultra chips are expected to drive growth by 2026.

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