Shares of semiconductor company Marvell Technology (MRVL) jumped by 6.08% intraday on May 26, after the company received an upgrade from HSBC. Analysts at HSBC lifted Marvell’s rating from “Hold” to “Buy” and raised the price target from $85 to $300 (indicating a 44.1% upside from current levels), citing a “supercycle” related to AI networking.
Analyst Frank Lee believes that revenue growth from optical interconnect is still being underestimated by the market, with the technology being potentially an upside driver to consensus forecasts over the next couple of years. In addition, the memory shortage affecting agentic AI CPUs could lead to more upside. The analyst expects Marvell to be a “key beneficiary” as AI clusters mature into AI factories, thereby raising the importance of optical interconnects.
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At this juncture, we take a closer look at Marvell.
About Marvell Technology Stock
Marvell Technology is a semiconductor firm that builds data infrastructure chips, including Ethernet switches, optical links, custom AI accelerators, and storage controllers, spanning from the data center core to the network edge. Based in Wilmington, Delaware, Marvell plays a vital role in AI by delivering custom silicon and high-speed optical connectivity that handles the massive data transfer and accelerated computing required by generative AI workloads.
Major hyperscalers, including Amazon (AMZN), Microsoft (MSFT), and Alphabet's (GOOG) (GOOGL) Google, rely on Marvell’s bespoke chips and networking technology to power their AI infrastructure, positioning the company as a key enabler of worldwide AI expansion. The company has a market capitalization of $186.88 billion.
As Marvell’s business has pivoted decisively to AI data center growth, driven by explosive demand for optical connectivity and Ethernet switches, the stock has gained 212.43% over the past 52 weeks and is up 134.63% year-to-date (YTD). The stock reached a 52-week high of $217.45 on May 26, but is down 7.1% from that level.
www.barchart.com Skyrocketing gains have raised Marvell’s valuation. Its forward adjusted price-to-earnings (non-GAAP) ratio of 54.09 times is higher than the industry average of 24.99 times.
A Look at Marvell Technology’s Past Financials Prior To Its Earnings Release
Marvell is set to release its first-quarter results for fiscal 2027 today, on May 27, after the market closes. Wall Street analysts expect its EPS (on a diluted basis) to grow 29.8% year-over-year (YOY) to $0.61. In the last fiscal year (ended Jan. 31, 2026), the company reported $8.195 billion in net revenue, up 42.1% YOY, driven by robust demand for AI.
However, its annual non-GAAP gross margin dropped from 61% to 59.5% over the same period, while its non-GAAP operating margin grew from 28.9% to 35.3%. Non-GAAP EPS increased 80.9% YOY to $2.84.
After the robust growth Marvell exhibited in the last fiscal year, the company continues to expect solid momentum. Marvell expects YOY revenue growth to accelerate each quarter in fiscal 2027, driven by continued strength in its data center business, with bookings growing at a record pace.
Wall Street analysts are robustly optimistic about Marvell’s future earnings. For fiscal 2027, EPS is projected to surge 40.7% annually to $3.04, followed by a 48% growth to $4.50 in fiscal 2028.
What Analysts Are Saying About Marvell Technology Stock
Apart from the massive HSBC upgrade, other Wall Street analysts have also shown neutral to positive stances on Marvell’s stock. This month, Morgan Stanley analysts maintained an “Equalweight” rating and a $90 price target. Analyst Joseph Moore affirmed that, despite concerns about Marvell losing one of its custom silicon AI customers (widely believed to be Microsoft’s Maia 2), industry checks indicate the company still holds the design.
Stifel analysts raised the price target from $140 to $210 and maintained a “Buy” rating. An analyst says that Nvidia's partnership and increased hyperscaler capital spending strengthen Marvell's data center growth path. Susquehanna analysts raised the price target from $100 to $230, while maintaining a “Positive” rating. The analysts at the firm cited strength in the company’s Inphi and Custom XPU businesses.
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 26 analysts have given it a “Strong Buy” rating, three analysts suggested “Moderate Buy,” while seven analysts are playing it safe with a “Hold” rating. The consensus price target of $152.51 represents 24.5% 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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