Key Takeaways
- Oppenheimer increased Marvell’s price target from $150 to $170 while maintaining its Outperform rating
- Shares climbed 22% across five consecutive trading days — the longest gain streak in more than 12 months
- The company manufactures custom AI ASICs for Amazon and plans to add Microsoft as a customer in the latter half of 2026
- Custom chip revenue projections show a doubling to $4 billion in the coming year, with expectations exceeding $10 billion by 2028
- Barclays moved MRVL to Overweight on April 9 with a $150 target; Cantor Fitzgerald increased its target to $120
Marvell Technology has experienced a notable upswing in recent trading sessions. Shares advanced for five consecutive days, accumulating a 22% gain during that period — marking the company’s strongest consecutive run in over a year. Looking at the broader picture, the stock has surged 151% over the trailing 12 months.
Marvell Technology, Inc., MRVL
The recent momentum has been fueled by growing optimism surrounding the company’s data center operations and artificial intelligence semiconductor division, with several Wall Street firms adopting increasingly bullish stances.
On Tuesday, Rick Schafer from Oppenheimer elevated his price target on MRVL from $150 to $170 while reaffirming an Outperform rating. Based on Tuesday’s closing price near $134, this new target suggests approximately 27% potential upside.
Schafer highlighted Marvell’s comprehensive portfolio of copper and optical solutions as a significant competitive advantage. The semiconductor company produces digital signal processors that transform electrical signals into optical pulses for fiber optic transmission, positioning them as essential components in contemporary AI infrastructure. Schafer anticipates data center operations will account for 75% of Marvell’s total revenue this year.
Custom AI Semiconductor Business Gaining Momentum
Beyond its networking portfolio, Marvell’s application-specific integrated circuits (ASICs) for AI workloads are capturing investor attention. The firm currently manufactures custom chips for Amazon and has secured an agreement to supply Microsoft beginning in the second half of 2026.
During a recent investor conference in Europe organized by Oppenheimer, Marvell management disclosed that ASIC revenue is projected to reach $4 billion next year — double the current level. Looking further ahead, the company has set a goal of exceeding $10 billion in ASIC revenue by 2028.
Following these presentations, Schafer revised his earnings projections upward. His 2027 EPS forecast increased from $3.84 to $3.92, while his 2028 estimate rose from $5.35 to $5.53. Both figures exceed the current Street consensus of $3.84 and $5.46 for those respective years.
On Wednesday morning, MRVL declined 1.7% to $131.55 in pre-market trading as some shareholders locked in gains following the recent advance. S&P 500 futures showed minimal movement as optimism from temporary U.S.-Iran ceasefire discussions faded.
Multiple Firms Express Increased Confidence
Oppenheimer isn’t the only research firm expressing heightened optimism. On April 9, Barclays elevated Marvell from Equal Weight to Overweight while boosting its price target from $105 to $150. Analyst Tom O’Malley cited industry intelligence suggesting optical port shipments will double in 2026 and double once more in 2027.
Barclays projects Marvell’s optical business could expand roughly 90% this year and next, even factoring in potential market share gains by Broadcom.
Also on April 9, Cantor Fitzgerald lifted its price objective from $100 to $120 while maintaining a Neutral stance. The firm acknowledged robust AI demand but noted lingering investor caution following recent portfolio reductions. Cantor suggested memory and semiconductor equipment manufacturers might be early beneficiaries if market sentiment improves.
As of Wednesday’s pre-market session, MRVL was changing hands at $131.55.
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