Marvell Technology Shares Lower Overnight, As Analyst Doubles Price Target

Marvell Technology shares (NASDAQ:MRVL) are down 3% in overnight trading, despite analysts upgrading the stock off the back of last night’s earnings. The company has emerged as a focal point for AI infrastructure optimism in recent months, with the share price having more than doubled YTD (+122.28%) into the print, but despite management outlining an accelerated growth trajectory through fiscal 2027 and 2028, prompting higher price targets from Wall Street analysts, the stock has pulled back along with broader markets.

Earnings saw a strong guide with Marvell’s share price up 10% as the print first came through, although that soon shifted gear, as profits were taken at highs, and a reversal ensued. T

he guide itself saw management now expecting revenue to reach $2.7 billion in the second quarter, representing ~12 percent sequential growth and 35 percent year-over-year at the midpoint. More significantly, the company projected that every remaining quarter of fiscal 2027 will deliver at least 10 percent sequential growth, pulling forward its $3 billion quarterly revenue milestone from the fourth quarter to the third quarter of the fiscal year.

Off the back of the print, Citi raised its target to $215 from $118 while maintaining a Buy rating, explicitly citing AI and data center growth potential. Wells Fargo lifted its target to $195 from $135 with an Overweight rating, while the more aggressive of the moves saw Roth Capital raise their price target to $275 from $135, more than doubling the previous mark.

The firm pointed to guidance, and sequential growth beating forecasts and topping double-digit sequential growth every quarter.

Driving sentiment, if not price on the day

The heart of Marvell’s upgraded outlook centers on growth drivers within its data center segment.

The company now expects overall data center revenue to grow approximately 40 percent year-over-year in fiscal 2027, with an acceleration to roughly 55 percent growth in fiscal 2028. This represents a material improvement over prior forecasts and suggests the company is capturing an expanding share of AI infrastructure spending.

Marvell’s interconnect business, which includes optical and electrical connectivity solutions for high-speed data transmission in AI clusters, is now expected to grow more than 70 percent year-over-year in fiscal 2027, up from a previous forecast of approximately 50 percent growth. This segment has become critical as hyperscale cloud providers build out increasingly complex AI training and inference infrastructure that requires massive bandwidth between compute nodes.

The custom silicon business, where Marvell designs application-specific integrated circuits for large cloud customers, is projected to grow more than 20 percent in fiscal 2027 and then more than double in fiscal 2028. This trajectory suggests that multiple design wins are transitioning from development into volume production, a process that typically takes 18 to 24 months from initial engagement to meaningful revenue contribution.

Management emphasized during the earnings call that accelerating demand spans multiple product categories, including Ethernet switching, optical interconnects, and custom AI accelerators. The company’s total fiscal 2027 revenue outlook now stands at approximately $11.5 billion, representing an increase of more than $500 million versus prior guidance.

Outlook and Analysis

The aggressive price target increases from multiple brokerages reflect a fundamental reassessment of Marvell’s positioning within the AI infrastructure stack. Unlike pure-play GPU providers, Marvell operates across the networking, connectivity, and custom compute layers that enable AI clusters to function efficiently. This diversified exposure provides both resilience and complexity in forecasting the company’s trajectory.

From a fundamental perspective, markets will be watching the pace of custom silicon revenue ramp into fiscal 2028, the sustainability of 70-plus percent growth in interconnects as the installed base scales, and any commentary from hyperscale cloud providers about their own semiconductor roadmaps that could provide clues as to what comes next. For now, Marvell holders will have to make do with a pullback on a solid print, with the Nasdaq 100 tracking QQQ ETF showing markets can expect to open ~0.5% lower.