Key Takeaways
- Fourth-quarter results exceeded expectations with adjusted EPS of $0.80 and $2.22 billion in revenue
- Data center segment generated $1.65 billion, marking a 21% increase from the prior year
- First-quarter revenue outlook of $2.4 billion significantly topped analyst consensus of $2.28 billion
- Bank of America analyst Vivek Arya upgraded MRVL to Buy from Hold with a $110 price target
- Benchmark Research initiated Buy coverage with a $130 price objective
Shares of Marvell Technology (MRVL) soared more than 11% during Friday’s premarket session following the semiconductor company’s impressive fourth-quarter financial performance.
The chipmaker delivered adjusted earnings per share of $0.80 against revenue of $2.22 billion. Analyst forecasts had called for $0.79 in EPS alongside $2.21 billion in sales.
The data center business segment produced $1.65 billion in revenue, surpassing the Street’s $1.63 billion projection while posting 21% growth compared to the year-ago period.
Marvell Technology, Inc., MRVL
Chief Executive Mark Murphy indicated the firm anticipates accelerating revenue growth on a year-over-year basis throughout each quarter of fiscal 2027. He highlighted record booking activity and persistent momentum within data center operations.
For the complete fiscal 2026 period, Marvell generated $8.195 billion in revenue, representing a substantial 42% year-over-year increase.
The semiconductor stock had declined 11% year-to-date prior to earnings, making Friday’s rally a significant recovery of previously lost value.
Wall Street Upgrades Pour In
Susquehanna analyst Christopher Rolland maintained his Positive stance with a $100 price objective, describing Marvell’s prospects across custom ASIC designs, interconnect solutions, and photonics as “robust.”
Benchmark Research’s Cody Acree took a more aggressive approach, elevating his recommendation to Buy from Neutral while establishing a $130 target price. Acree recognized that Marvell might be splitting Amazon’s upcoming Trainium 3 chip development with Alchip, though he noted this factor “ultimately doesn’t matter in the overall grand scheme” of the company’s expansion trajectory.
Numerous additional analysts boosted their price objectives, pointing to the semiconductor maker’s AI-driven growth potential.
Growth Catalysts
Although Marvell’s custom artificial intelligence chip offerings — specifically ASICs — capture significant investor attention, a substantial portion of the company’s momentum stems from networking hardware deployed within data center facilities.
Management projects interconnect revenue will expand by more than 50% during fiscal 2027.
Marvell has completed two strategic acquisitions to strengthen this business area. The company acquired optical networking firm Celestial AI for $3.25 billion and purchased interconnect technology provider XConn for $540 million.
Guidance for the first quarter also exceeded Wall Street’s expectations. Marvell forecasted earnings of $0.79 per share on revenue of $2.4 billion. Analyst consensus had anticipated $0.74 in EPS and $2.28 billion in sales.
Major cloud infrastructure providers continue maintaining elevated spending levels. Microsoft, Alphabet, Amazon, and Meta are projected to deploy approximately $650 billion in combined capital expenditures this year, with substantial allocations directed toward AI-focused data center infrastructure — precisely the equipment Marvell provides.
Marvell wasn’t alone among semiconductor companies reporting strong results this week. Broadcom announced better-than-anticipated Q1 numbers on Wednesday with solid Q2 guidance. Chief Executive Hock Tan stated Broadcom has “line of sight” toward AI-related business revenue surpassing $100 billion by 2027. Broadcom shares dipped 0.6% in Friday’s premarket after advancing 4.8% during the previous session.
One potential concern deserves monitoring: both Marvell and Broadcom maintain significant revenue concentration among a limited number of major clients. Market participants have been scrutinizing whether Marvell is losing market share at Amazon or Microsoft. The fourth-quarter outperformance may temporarily alleviate some of those worries.
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