NEW YORK (Bloomberg) - Marvell Technology Group Ltd. gained the most in 17 months after UBS AG recommended that investors buy the semi-conductor maker's shares because of rising demand for chips used in computer disk drives.

Marvell shares rose $1.07, or 10 percent, to $11.56, at 3:25 p.m. in New York. The stock had fallen 43 percent over the past year before today, compared with a 4.7 percent decline in the Nasdaq Composite Index.

Analyst Uche Orji increased his fourth-quarter and 2009 revenue estimates for Hamilton, Bermuda-based Marvell because of "solid" demand from customers such as Western Digital Corp. and Research In Motion Ltd. Mr. Orji previously had a "neutral" rating on Marvell shares.

The New York-based analyst said Marvell's efforts to control costs were "on track" after recently meeting with the company's interim chief financial officer Michael Rashkin.