Oppenheimer Holdings (OPY) came away from its latest huddle with Marvell Technology (MRVL) feeling like it had struck gold, promptly lifting its price target for the stock as management painted a confident picture of surging demand in artificial intelligence (AI) data center networking and application-specific integrated circuits (ASIC).
Analyst Rick Schafer and his crew picked up that same drumbeat after meeting key officials in Europe, where management spoke plainly and struck a firmly bullish tone. They pointed to accelerating growth driven by Data Center AI (DCAI) networking and ASIC, with momentum showing no signs of cooling off.
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The firm now expects revenue to clear $11 billion this year, a sharp jump from roughly $9 billion just six months ago, and it has set its sights on more than $15 billion in calendar year 2027, which shows they are going all in.
Data centers already account for 75% of sales, split roughly 70-30 between networking and ASIC in the near term, with the mix expected to shift toward 60-40 over time as extended processing unit (XPU) attach wins start to kick in.
Custom AI ASIC revenue should at least double to $4 billion next year before crossing $10 billion in CY28. Meanwhile, optics has quietly kept the engine humming with 50% annual growth for five straight years.
Analysts expect Marvell to either defend or grow its turf in core markets like Pulse Amplitude Modulation 4-level (PAM4) and scale out and scale up switching. If capital expenditure assumptions turn out to be too cautious, that strength could make investors pause and think twice before chasing the stock at these levels.
About Marvell Stock
Headquartered in Wilmington, Delaware, Marvell Technology builds the plumbing behind the digital world, developing data infrastructure semiconductor solutions that keep everything running smoothly from data center cores to network edges across global markets.
With a market cap of $117.7 billion, the company designs system-on-chip architectures and rolls out networking, storage, interconnect, and custom chip solutions, working hand in glove with direct customers and distributors since opening its doors in 1995.
Over the past 52 weeks, Marvell’s shares have surged 157.13%, and it has carried that momentum into this year with a 57.13% gain year-to-date (YTD). The last month alone has delivered a sharp 45.8% jump, and in just the past five trading sessions, it has tacked on another 11.34%, showing the rally still has plenty left in the tank.
www.barchart.com On the valuation front, MRVL stock commands 35.16 times forward adjusted earnings and 10.84 times sales, placing it comfortably above industry benchmarks and showing the market still prices it at a premium.
Also, the company pays an annual dividend of $0.24 per share, translating to a yield of 0.18%, with the latest $0.06 per share payout scheduled for April 30 to shareholders on record as of April 10, keeping returns ticking over in the background.
Marvell Surpasses Q4 Earnings
On March 5, Marvell reported its fiscal 2026 fourth quarter results, wherein revenue rose 22.1% year-over-year (YOY) to $2.22 billion, edging past analyst estimates of $2.21 billion. Adjusted EPS rose 33.3% from the year-ago value to $0.80 and beat the Street’s forecast of $0.79.
Non-GAAP net income increased 28.9% from the year-ago value to $685.1 million. On the balance sheet, cash and cash equivalents stood at $2.6 billion as of Jan. 31, compared to $948.3 million as of Feb. 1, 2025.
Management credited the performance to surging demand for its data center products, especially in interconnect, switching, and storage. CEO Matthew Murphy put it plainly when he said, “Our data center revenue surpassed $6 billion, growing 46% year-over-year,” making it clear that both legacy and newer offerings pulled their weight.
Investors liked what they heard. Marvell’s shares jumped 18.4% in the next trading session. Looking ahead, management has built its outlook on continued acceleration in data center demand, particularly for AI-driven networking solutions.
Bookings sit at record levels, and new customer engagements, along with product ramps across interconnect and custom silicon, should keep revenue moving higher. For Q1 fiscal 2027, management expects net revenue of $2.4 billion plus or minus 5%, and it sees non-GAAP diluted net income per share landing at $0.79 plus or minus $0.05.
Analysts expect first-quarter fiscal year 2027 EPS to rise 29.8% year-over-year to $0.61. For the full fiscal year 2027, they project earnings growth of 40.7% to $3.04, followed by another 48% jump to $4.50 in fiscal year 2028.
What Do Analysts Expect for Marvell Stock?
Oppenheimer has sweetened the deal, lifting its price target on MRVL stock to $170 from $150 and sticking to its “Outperform” call.
Wall Street has clearly taken a liking to the stock and placed it in the “Strong Buy” territory. Out of 36 analysts covering the stock, 27 have issued “Strong Buy” ratings, three have gone with “Moderate Buy,” while six have stayed on “Hold.”
The stock has already run past its average price target of $124.07. Meanwhile, the Street's high target of $164 suggests a gain of 22.5% from current levels.
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www.barchart.com On the date of publication, Aanchal Sugandh 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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