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Marvell Could See AI Revenue Double By 2028 Thanks To New Tech Deal: Analysts

Benzinga · 2d ago

Marvell Technology Inc. (NASDAQ:MRVL) shares traded higher on Wednesday after the company reported strong third-quarter earnings.

Wall Street analysts raised their price forecasts on the stock after the upbeat results.

  • Rosenblatt analyst Kevin Cassidy maintained Marvell with a Buy and raised the price forecast from $95 to $120.
  • Benchmark analyst Cody Acree reiterated a Buy rating for Marvell and raised the price forecast from $95 to $130.
  • JPMorgan analyst Harlan Sur maintained an Overweight rating for Marvell and raised the price forecast from $120 to $130.
  • Needham analyst N. Quinn Bolton reiterated a Buy rating for Marvell and raised the price forecast from $95 to $120.

Also Read: Marvell Chases AMD-Backed Celestial AI In Multi-Billion Dollar Deal

Rosenblatt

Cassidy expressed high confidence in the company's growth trajectory through 2030.

The analyst highlighted the management's robust outlook for fiscal 2027 and 2028 as the key driver, specifically the projection that data center revenue will jump more than 25% next year.

He emphasized that Marvell secured full purchase orders for its next-generation custom chip program, which removes fears of revenue gaps.

Furthermore, Cassidy praised the strategic value of the Celestial AI acquisition, predicting its optical technology will contribute meaningful revenue by late fiscal 2028.

Benchmark

Acree urged investors to buy before an upcoming growth inflection.

The analyst highlighted Marvell's accelerating revenue visibility, including 40% Data Center growth and a doubling of custom chip sales by fiscal 2028.

He emphasized the company's relationship with Amazon.com Inc (NASDAQ:AMZN), citing secured orders for next-generation programs that eliminate near-term revenue gaps.

Additionally, Acree praised the acquisition of Celestial AI, arguing it positions Marvell to dominate the emerging optical interconnect market.

He projected fiscal 2027 revenue of $9.93 billion and adjusted EPS of $3.59.

With fiscal 2028 revenue potentially reaching $12.35 billion—well above consensus—the analyst views the current share price as an attractive entry point before growth accelerates next year.

JPMorgan

Sur emphasized that Marvell's strong Data Center outlook overshadows the quarterly results, pointing to a new baseline of over 25% growth for fiscal 2027.

The analyst stressed that Marvell holds firm purchase orders from Amazon Web Services covering the entire fiscal 2027 Trainium 3 ramp, effectively locking in near-term revenue.

Moreover, he argued that the Celestial AI acquisition virtually confirms Marvell won the design for Amazon's next-generation 2nm Trainium 4 chip, given the specific engineering integration required.

With custom silicon revenue potentially doubling in fiscal 2028, Sur sees a "solid setup" driven by accelerating AI budgets and confirmed design wins.

Needham

Bolton highlighted a stronger outlook for Marvell's Data Center segment, as its custom silicon and interconnect solutions gain traction.

The analyst emphasized clear visibility into growth, supported by purchase orders from a lead customer that cover the entire fiscal 2027 forecast, ensuring no revenue gaps next year.

He also viewed the acquisition of Celestial AI as a key long-term driver, expecting it to contribute meaningful revenue starting in the second half of fiscal 2028 and reach a $1 billion run rate by fiscal 2029.

MRVL Price Action: Marvell Tech shares were up 6.38% at $98.81 at the time of publication on Wednesday, according to Benzinga Pro data.

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