Marvell Technology (MRVL) surged 6.73% in pre-market trading on Friday, extending a powerful rally across the semiconductor sector. The stock rode a wave of renewed investor confidence as chip stocks rebounded sharply from a recent selloff that had pushed the Philadelphia Semiconductor Index near bear-market territory.

The pre-market advance was fueled by optimism surrounding artificial intelligence spending after Microsoft’s latest earnings report. The tech giant posted a 70% surge in capital expenditures but also signaled a “responsible” financial outlook, projecting positive free cash flow in its new fiscal year. Analysts noted that this commentary helped ease fears that massive AI infrastructure costs would overwhelm revenues, reigniting enthusiasm for AI-related chip makers.

Adding to the bullish sentiment, multiple Wall Street firms have recently raised their price targets on Marvell Technology. KeyBanc set a Street-high target of $400, while Renaissance Capital and BNP Paribas lifted their targets to $276 and $275, respectively. The consensus analyst rating remains a unanimous Buy. Additionally, the company’s announcement of a $250 million investment in India to expand R&D and accelerate AI technology development further reinforced its long-term growth narrative in the AI infrastructure space.