Marvell Boasts Solid Q4, Stands To Benefit From AI Infrastructure Growth

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Shares of Marvell Technology Inc (NASDAQ: MRVL) rallied in early trading on Friday, after the company reported strong fourth-quarter (Q4) results.

Here are the key analyst insights:

  • BofA Securities analysts upgraded the rating from Neutral to Buy, while raising the price target from $90 to $110.
  • Goldman Sachs analyst James Schneider reiterated a Neutral rating, while lifting the price target from $90 to $100.
  • JPMorgan analyst Harlan Sur maintained an Overweight rating, while raising the price target from $130 to $135.
  • Rosenblatt Securities analyst Kevin Cassidy reaffirmed a Buy rating, while lifting the price target from $115 to $140.
BofA Securities: Analysts said in the upgrade note that Marvell's earnings call inspired greater confidence in:

  • The company's "solid leverage to AI optical connectivity"
  • Potential for success in Microsoft Corp's (NASDAQ: MSFT) upcoming custom chip (XPU) program
  • Turning the corner on Amazon.com Inc (NASDAQ: AMZN) XPU transition year
The analysts raised their sales estimates for fiscal 2027 and 2028 by 8% and 12% and pro-forma earnings estimates by 15% and 12% to $3.82 per share and $5.43 per share, respectively. (+42% YoY).

"Addition of Celestial AI positions the company well for the upcoming CPO transition in CY28/beyond," they further wrote.

Goldman Sachs: Marvell reported revenue of $2.22 billion and operating earnings of 80 cents per share, broadly in-line with consensus estimates of $2.20 billion and 79 cents per share, Schneider said. The company's Data Center revenue came in at $1.65 billion, versus Street expectations of $1.64 billion.

With an improving outlook for its Data Center business, Marvell guided to fiscal 2027 total revenue at $11 billion. That's 30% growth, the analyst stated. This is driven by 40% growth in Data Center and 10% growth in Communications and Other.

JPMorgan: Accelerating data center demand drove Marvell Q4 results. Sur noted "growth across all key product lines-and continued gradual recovery in Communications and Other segments." The company reported fiscal 2026 revenue of $8.19 billion, representing 42% growth, and non-GAAP earnings of $2.84.

Management guided to fiscal first-quarter revenues up 8% sequentially to $2.40 billion, topping consensus of $2.28 billion, "reflecting sustained strong data center growth," the analyst stated. Similar quarterly growth rates through the year would mean the company exiting fiscal 2027 with revenues of more than $3 billion.

Rosenblatt Securities: Marvell Technology reported total revenue of $2.22 billion, up 7% sequentially and 22% year-on-year, Cassidy said. The Data Center business, which accounts for 74% of total revenue, delivered revenue of $1.65 billion, topping consensus of $1.63 billion, "on strong interconnect demand."

The Data Center segment surpassed $6 billion in full-year revenue and management guided to sequential growth in the first quarter, the analyst stated. The company raised its revenue estimate for fiscal 2027 from $10 billion to $11 billion, he further said.

MRVL Price Action: Shares of Marvell Technology had risen by 21.19% to $91.72 at the time of publication on Friday.