Following a blockbuster quarterly earnings last month, popular chip firm Marvell Technology (MRVL) has found another tailwind. The company’s stock gained 32.5% intraday on June 2 after it unveiled Marvell Teralynx T100, the industry’s first 102.4 Tbps switch silicon. This offering is purpose-built for the next generation of artificial intelligence (AI) infrastructures.
As data centers today face the crucial problem of rampant power consumption, network inefficiencies create underutilized GPUs and higher training costs, and push air cooling to its limits, the Teranyx T100 provides 25% lower power than competitive solutions and offers the lowest latency at the current bandwidth tier. Beginning this quarter, the silicon is expected to be sampled to Marvell’s customers.
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We take a closer look at Marvell as investors reward its new technology.
About Marvell Technology Stock
Based in Santa Clara, California, Marvell is a worldwide semiconductor firm that creates custom silicon and data center infrastructure products. The company delivers core technology for transmitting, processing, storing, and protecting data across enterprise networks, cloud platforms, and 5G systems.
Its offerings include custom application-specific integrated circuits, network switching chips, interconnect solutions, and optical infrastructure that power today's data centers and enterprise networks. Marvell's innovations enable faster and more dependable data movement for cloud providers, telecom carriers, and enterprise clients. The company's market capitalization stands at $254.38 billion.
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www.barchart.com Over the past 52 weeks, Marvell’s stock has gained 377.9%, driven primarily by explosive demand for its custom AI chips and optical interconnect solutions. This year, based on positive tailwinds, the stock has gained a whopping 250.7%. Marvell reached an all-time intraday high of $291.30 on June 1, and has already hit a new high today at $324.20.
On a forward-adjusted basis, Marvell’s price-to-earnings (non-GAAP) ratio of 71.92 times is significantly higher than the industry average of 26.65 times.
Marvell Technology's Q1 Earnings See Record Revenue as AI Business Grows
Marvell reported a record revenue for the first quarter of fiscal 2027 (quarter ended May 2). The company’s top line surged by a robust 28% year-over-year (YOY) to $2.42 billion, which was modestly higher than the $2.40 billion that Wall Street analysts had expected.
Data center end-market revenue grew by 27% YOY to $1.83 billion, driven by robust demand for its 800G PAM4 optical DSPs (digital signal processors), with 1.6T quickly ramping. Overall, the company saw AI-driven demand across all key product lines. As the market largely recovered from customer inventory corrections, Marvell’s communications and other end-market revenue increased 29% annually to $585 million.
Marvell’s non-GAAP operating margin surged by 80 basis points YOY to 35%, while its non-GAAP EPS grew 29% to $0.80, which met Wall Street’s expectations.
On the backs of solid AI-related bookings, Marvell’s outlook was raised for both fiscal 2027 and fiscal 2028. Marvell forecasts FY27 revenue growth to accelerate each quarter, with full-year growth of approximately 40%. Data center revenue is expected to surge by around 50% YOY, with interconnect revenue growth exceeding 70%. Looking ahead, FY28 revenue is projected to climb roughly 45% YOY to about $16.50 billion, approximately $1.50 billion higher than the previous outlook.
Wall Street analysts are robustly optimistic about Marvell’s future earnings. For fiscal 2027, EPS is projected to surge 41.2% annually to $3.05, followed by a 47.5% growth to $4.50 in fiscal 2028.
Here’s What Analysts Think About Marvell Technology’s Stock
Barclays analyst Tom O’Malley raised the price target on Marvell from $150 to $275, while maintaining an “Overweight” rating on the stock, citing the company’s Q1 earnings and the company’s raised outlook for FY2027 and FY2028. Needham analyst also raised the price target on MRVL from $118 to $270, while maintaining a “Buy” rating, citing the company’s earnings beat and guidance.
Stifel analysts also maintained a “Buy” rating and raised the PT from $230 to $321 following a keynote address by Chairman and CEO Matt Murphy at COMPUTEX 2026. Stifel analysts noted the rising market acceptance of the company’s position in the data center and AI supercycle.
Wall Street analysts are strongly bullish on Marvell’s stock, with a consensus “Strong Buy” rating. Of the 36 analysts rating the stock, a majority of 27 analysts have given it a “Strong Buy” rating, three analysts suggested “Moderate Buy,” while six analysts are playing it safe with a “Hold” rating. The consensus price target of $224.95 represents 25.46% downside from current levels.
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www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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