Shares of Marvell Technology (MRVL) surged 6.45% during Thursday’s session, riding a powerful wave of momentum that swept through the semiconductor industry. The stock’s advance came as part of a broad-based rally in chip stocks, which saw the PHLX Semiconductor Index climb more than 8% during the day.

The rally was fueled by renewed optimism around artificial intelligence spending following Microsoft’s latest earnings report. The tech giant reported a 70% surge in capital expenditures, but also offered a "responsible" financial outlook, signaling positive free cash flow in its new fiscal year. Analysts noted that this commentary helped ease fears that sky-high AI infrastructure costs would overwhelm revenues, reinvigorating investor confidence across the chip sector.

Marvell Technology also benefited from a series of bullish analyst actions. Multiple Wall Street firms, including KeyBanc, China Renaissance, and BNP Paribas, have recently raised their price targets on the stock, with KeyBanc setting a Street-high target of $400. The consensus analyst rating remains a unanimous Buy. Additionally, the company’s announcement of a $250 million investment in India to expand its R&D facility and accelerate AI technology development further reinforced its long-term growth narrative in the AI infrastructure space.