The stock price also was raised to $32 a share from $25, which implies a 27% increase from Marvell's closing price Friday of $25.14. The average price target on Wall Street is $27.91, according to Bloomberg.
Marvell shares rose 6.3% to $26.73.
Analyst Gary Mobley wrote that Marvell was at a "tipping point" with respect to 5G investments.
"MRVL should continue to experience robust 5G base station-related sales to Nokia and Samsung for the balance of 2019 and into 2020," Mobely wrote.
He added he expects data-center capital expenditures to rise which "should bode well for MRVL's Octeon/Nitrox and Fibre Channel sales."
"While our preeminent 5G semiconductor play has been a bit slower to develop relative to our other red-hot semi stocks like Lam Research (LRCX) - Get Report and Nvidia (NVDA) - Get Report , we think Marvell and its clean-cut 5G catalyst will continue to gain appreciation as we move closer to the new year," wrote Jim Cramer and the Action Alerts PLUS team, which holds the three stocks in its portfolio.
Early in October, Needham removed Marvell, the semiconductor maker, from its conviction list.
Needham analyst N. Quinn Bolton said he expects the U.S. government's efforts to discourage the use of Huawei's 5G infrastructure equipment will put a dent in Marvell's earnings, in turn taking away from "some incremental upside to Marvell's 5G revenue, as its customers may not gain market share against Huawei."
However, the analyst maintained his one-year price target on the stock at $28, noting that Marvell remains "the best play on the adoption of 5G wireless infrastructure in our coverage universe over the next couple of years."
The downgrade from Needham followed a rough quarter for Bermuda-based Marvell Technology.