Key Highlights

  • Marvell delivered Q4 results with EPS of $0.80 and revenue totaling $2.22 billion, exceeding expectations
  • Data center segment generated $1.65 billion, representing 21% growth compared to the prior year period
  • Q1 revenue forecast of $2.4 billion surpassed Wall Street consensus of $2.28 billion
  • Bank of America’s Vivek Arya elevated MRVL from Hold to Buy, setting a $110 price objective
  • Benchmark Research upgraded shares to Buy with a $130 price objective

Marvell Technology (MRVL) shares soared more than 11% during Friday’s premarket session following the semiconductor company’s release of fourth-quarter financial results that exceeded market expectations.

The chipmaker delivered adjusted EPS of $0.80 alongside revenue of $2.22 billion. Analyst consensus had anticipated $0.79 per share and $2.21 billion in sales.

The data center division produced $1.65 billion in revenue, surpassing the $1.63 billion estimate from analysts while marking 21% growth versus the comparable quarter in the previous fiscal year.


MRVL Stock Card
Marvell Technology, Inc., MRVL

CEO Mark Murphy stated the company anticipates accelerating year-over-year revenue expansion throughout each quarter of fiscal 2027. Murphy highlighted bookings reaching record levels along with ongoing momentum in the data center business.

Marvell generated full-year fiscal 2026 revenue of $8.195 billion, representing a 42% increase compared to the prior fiscal year.

Shares had declined 11% year-to-date before the earnings release, making Friday’s rally a substantial recovery of those earlier losses.

Wall Street Analysts Raise Ratings and Targets

Susquehanna’s Christopher Rolland maintained his Positive stance with a $100 price objective, describing Marvell’s prospects across custom ASICs, interconnects, and photonics as “robust.”

Benchmark Research analyst Cody Acree took a more bullish approach, upgrading shares to Buy from Neutral while establishing a $130 price objective. Acree recognized that Marvell might be splitting Amazon’s upcoming Trainium 3 design responsibilities with Alchip, though emphasized this scenario “ultimately doesn’t matter in the overall grand scheme” when considering the company’s broader expansion catalysts.

Multiple additional analysts lifted their price objectives, citing the firm’s artificial intelligence-related growth trajectory.

Revenue Growth Catalysts

While Marvell’s custom AI semiconductor operations — ASICs — attract significant investor focus, a substantial portion of the company’s expansion stems from networking equipment deployed within data centers.

Management indicated interconnect revenue should expand by more than 50% during fiscal 2027.

Marvell completed two strategic acquisitions to strengthen this business segment. The company acquired optical-networking specialist Celestial AI for $3.25 billion alongside interconnect technology provider XConn for $540 million.

First-quarter guidance also exceeded market projections. Marvell forecasts earnings of $0.79 per share with revenue of $2.4 billion. Analyst estimates called for $0.74 EPS alongside $2.28 billion in sales.

Major cloud computing providers continue maintaining elevated infrastructure spending levels. Microsoft, Alphabet, Amazon, and Meta are projected to deploy approximately $650 billion combined in capital expenditures this year, with substantial allocations directed toward AI data center infrastructure — the category where Marvell provides essential components.

Marvell stands among several semiconductor companies delivering strong quarterly performances this week. Broadcom announced better-than-anticipated Q1 results Wednesday while providing robust Q2 guidance. CEO Hock Tan indicated Broadcom has “line of sight” toward AI business revenue surpassing $100 billion in 2027. Broadcom shares decreased 0.6% in Friday’s premarket following a 4.8% advance in the previous session.

One consideration merits attention: both Marvell and Broadcom derive significant revenue from a concentrated customer base. Market participants have monitored whether Marvell faces reduced business opportunities at Amazon or Microsoft. The strong Q4 performance may temporarily alleviate some investor concerns regarding customer concentration.