Marvell reportedly announced several updates at its custom AI silicon event – the company raised its total addressable market (TAM) estimate to $94 billion by 2028, up by 26% from its previous forecast.

Marvell Technology Inc. (MRVL) stock ripped more than 7% in Wednesday’s midday trading session after the shares drew a slew of price target hikes and analyst optimism following the company’s custom AI silicon event.

Marvell announced several updates at its custom AI silicon event – the company raised its total addressable market (TAM) estimate to $94 billion by 2028, up by 26% from its previous forecast, according to Investing.com.

Reacting to the news, Marvell’s stock surged as much as 11% on Wednesday, before paring some of the gains. Stocktwits data shows retail sentiment on the platform around the Marvell stock has been in the ‘bullish’ territory over the past month.

Analysts at Barclays see a $75 billion revenue pipeline, but tempered the optimism by stating that these wins won’t materialize until 2028 at the very least.

According to The Fly, Bank of America hiked its price target for the stock to $90 from $80. The brokerage believes the AI update could help the stock catch up to its peers.

Analysts at B. Riley raised their price target to $115 from $110, saying that Marvell has a “strong” next-generation AI growth inflection point.

Marvell also announced a collaboration with Empower Semiconductor for next-generation power solutions.

Empower and Marvell will work together to develop optimized integrated power solutions customized for the latter’s silicon platforms.

“Placing integrated voltage regulators (IVR) under, near, or inside the package delivers greater performance and greater efficiency,” said Will Chu, senior vice president and general manager of Custom Cloud Solutions at Marvell.

Marvell’s stock has declined nearly 33% year-to-date, but it is up nearly 2% over the past 12 months.

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