Marvell rose about 5 percent today, its third straight day of gains, and just reached a new record high. We think this is mostly the whole market moving higher, though Marvell is rising much faster than other chip stocks as people look ahead to its earnings report later this month.
Our view
Marvell is becoming an essential partner for cloud giants who need custom chips to run their AI systems. If you already own it, there is nothing to do here but sit tight and let that growth play out.
Goldman Sachs raised its price target for the company from $180 to $195. A price target is what an analyst thinks a stock will be worth in the future. Even with the increase, this new target is still about 15 percent lower than where the stock is trading today. This call is notably more conservative than the rest of the market. The average target among all analysts who follow the company is about $252. While the firm is acknowledging the company's progress, it is not yet as optimistic as its peers about how much higher the stock can go from here.
Stock rises on reports of potential China component restrictions
Marvell shares rose about 3 percent following reports that the U.S. government is considering new restrictions on data center components imported from China. Other companies that make the high-speed optical and networking parts used in large computer centers also saw their stocks rise on the news.
If these restrictions are put in place, it would likely reduce competition from Chinese suppliers for the specialized hardware that connects AI servers. While trade rules can be unpredictable, this move would favor Marvell because it is a leading American provider of the high-speed connections that big cloud companies need to keep their AI systems running.
The company is showcasing its portfolio of memory and storage solutions at the FMS 2026 conference. These tools are designed for agentic AI, which refers to AI systems that can act independently to complete complex tasks. As these models grow more advanced, they require significantly more memory capacity and faster data connections to function. This presentation highlights the company's focus on the infrastructure that supports AI beyond just raw processing power. While a routine industry event, it reinforces their role in providing the high-speed connections and storage architecture that cloud providers need to run the next generation of AI software.
Analysts see steady chip production despite market jitters
Despite recent volatility in chip stocks, industry analysts report that they see no slowdown in actual production. Some market observers have expressed concern that the massive spending on AI data centers might cool off, but the current data suggests that demand for the hardware that powers these centers remains high. For a company that provides the essential connections and custom chips for these data centers, this is a reassuring sign. It suggests that the underlying business remains strong even when the stock price fluctuates due to broader market sentiment or fears about spending cycles.
Company newsPositive
Jul 29
Investing $250 million to expand in India
The company is committing 250 million dollars to expand its operations in India over the next three years. This investment will focus on doubling its local headcount and upgrading its infrastructure in Bangalore to support the development of next-generation AI technology.
This move signals a significant expansion of the company's research and development capabilities. By growing its talent pool in a key global tech hub, the company is positioning itself to keep pace with the rapid engineering demands of the custom AI chip market.
Analysts have recently been raising their price targets for Marvell following a wave of positive news about the company's role in AI. Most analysts, 60 out of 73, rate the stock a buy with an average target price 10% higher than today.
Average target$251.83+10%vs $228.77 today
Avg price
Low $155High $400
Strong Buy73 analysts
1Bearish
12Neutral
60Bullish
FirmRatingPrice TargetDate
Goldman Sachs
—
$180→$195
8/12/2026
KeyBanc
Overweight
$385→$400
7/14/2026
UBS
Buy
$230→$340
6/29/2026
Cantor Fitzgerald
Neutral
$220→$300
6/29/2026
Stifel Nicolaus
Buy
$321→$350
6/24/2026
KeyBanc
Overweight
$260→$385
6/18/2026
B.Riley Financial
Buy
$345
6/12/2026
Stifel Nicolaus
Buy
$230→$321
6/2/2026
Oppenheimer
Outperform
$200→$250
5/28/2026
Cowen & Co.
—
$180→$200
5/28/2026
Cantor Fitzgerald
Neutral
$190→$220
5/28/2026
KeyBanc
Overweight
$130→$260
5/28/2026
Marvell Technology earnings
Management has a perfect track record of clearing its own hurdles lately. They consistently set a bar they can beat by a small, steady margin every single quarter.
Earnings history
EstimateBeatMiss
Marvell Technology past earnings results
Expected
Actual
Surprise
EPS
$0.80
$0.80
+0.3%
Revenue
$2.41B
$2.42B
+0.5%
Key highlights
Strong data center demand: Revenue from the data center business grew 27% compared to last year to reach $1.83 billion, fueled by a surge in demand for artificial intelligence systems and cloud networking. This segment is now the primary engine for the company, accounting for 76% of its total revenue.
Record cash generation: The company generated $638.8 million in cash from its operations this quarter, which is a new record high for the business. This strong cash flow provided the flexibility to complete two acquisitions, Celestial AI and XConn, to bolster its technology for future data center chips.
Rising profit forecast: Management expects second quarter revenue to hit $2.7 billion, which would be 35% higher than the same period last year. The company also raised its revenue outlook for the full 2027 and 2028 fiscal years because of what it calls exceptional bookings for its custom artificial intelligence chips.
Margins holding steady: Non-GAAP gross margin, which measures the profit left after direct production costs, was 58.9%. This is nearly identical to the 59% margin the company reported last quarter, showing that it is keeping costs under control even as it ramps up production of complex new hardware.
Growth in communications: The communications and other segment, which includes networking for offices and cars, grew 29% year over year to $585.1 million. This growth helped total company revenue reach a record $2.418 billion for the quarter.
Our take: A very strong quarter that confirms the company is successfully pivoting into a major artificial intelligence player. The record cash flow and the significant increase in the multiyear revenue outlook show that demand for its custom chips is accelerating. This performance strengthens the case for the company as a vital piece of data center infrastructure.
Marvell Technology’s next earnings date
Q2 2027
AUG
27
Expectation
EPS
$0.93
Revenue
$2.71B
Metrics we are tracking
Metric
Expectations
Status
Data Center Revenue Growth
Sustaining year-over-year growth above 30%
27% YoY in Q1 FY2027
Non-GAAP Gross Margin
Holding or expanding the current 59% level
58.9% in Q1 FY2027
Custom AI Bookings
Increasing trend in total dollar value for future fiscal years
Outlook raised for FY27 and FY28 in Q1 FY2027
Optical Interconnect Share
Maintaining a dominant position in 800G and 1.6T modules
Leading 800G and 1.6T deployments in Q1 FY2027
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