Key insights
- Stifel raised its price target for Marvell to $210 based on strong data center growth expectations, particularly in optical interconnects and XPUs. Other analysts have also raised their targets, citing demand from cloud service providers and growth in custom ASIC products. This positive sentiment suggests continued strength in the semiconductor sector, driven by AI and cloud infrastructure investments, potentially benefiting related US equities.
Investing.com - Stifel raised its price target on Marvell Technology Inc. (NASDAQ:MRVL) to $210 from $140 on Friday while maintaining a Buy rating on the shares. The stock currently trades at $190.69, just 2% below the 52-week high of $194.58.
The firm expects Marvell to exceed its $2.40 billion revenue estimate for the April quarter, representing an 8.2% sequential increase. Data center operations, which accounted for 74% of January quarter revenue, are expected to drive the upside, led by optical interconnects and the company’s lead XPU program.
Stifel projects Marvell could guide July quarter revenue above its current estimate of approximately $2.59 billion, an 8% sequential increase. The forecast is supported by accelerating 1.6T optical deployments, AWS Trainium 3 production, and broadening XPU-Attach momentum.
Management now expects interconnects to grow 50% year-over-year in fiscal 2027, up from a prior estimate of 30%. Data center revenue overall is expected to grow 40% in fiscal 2027, up from 25% previously, and a further 50% in fiscal 2028.
The new $210 price target is based on a 39.2x calendar year 2027 price-to-earnings multiple.
In other recent news, Marvell Technology is set to announce its earnings on May 27, with expectations of strong results driven by AI networking and custom ASIC products. Analysts at Oppenheimer have raised their price target for Marvell to $200, citing a significant demand from cloud service providers, who are projected to spend more than $710 billion this year. Wells Fargo also increased its price target to $195, highlighting the growth potential in AWS Trainium and Marvell’s guidance for Custom XPU revenue growth of over 20% year-over-year in fiscal 2027, with even more substantial growth expected in fiscal 2028.
Additionally, TD Cowen raised its price target for Marvell to $180, reflecting optimism about the company’s forward expectations following positive guidance from the previous quarter. Evercore’s research indicates robust demand for AI networking, although supply constraints remain a challenge. Despite these constraints, Evercore maintained an Outperform rating for Marvell, pointing to the strong demand observed in their channel checks. These developments suggest a positive outlook for Marvell Technology as it continues to expand its presence in the AI and cloud markets.
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