In a research note to clients, Svanberg said his team sees promise in Marvell's storage segment, which will continue to provide steady cash flow "... that can be utilized to fund development of technology for higher growth markets."
Marvell shares were up 1.97% at $24.38 in morning trading on Friday.
The upgrade follows a rough quarter for Bermuda-based Marvell, which has seen its stock price swoon on lower earnings guidance amid the ongoing U.S.-China trade war, specifically export restrictions on China's Huawei, which it says has dented its core chip-making business.
Following its second-quarter earnings announcement at the end of August, Marvell cut its third-quarter revenue guidance to $660 million from $695 million, and its per-share earnings forecast to a range of 15 cents to 19 cents from 21 cents.
However, CEO Matt Murphy noted at the time that those negatives were being "... offset by a stabilizing storage business and the earlier-than-expected first production shipments of our 5G solutions."
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