Marvell Stock Jumps 11% On Massive Data Center Gold Rush
Marvell Technology, Inc. (NASDAQ:MRVL) shares soared in premarket trading on Friday after the chipmaker delivered a standout earnings report underpinned by surging demand for AI technologies.
Fourth-Quarter Results Beat Estimates
Marvell reported fourth-quarter revenue of $2.22 billion, narrowly beating the consensus estimate of $2.21 billion, while adjusted earnings came in at 80 cents per share — one cent ahead of expectations.
The results represent a 22% year-over-year increase in revenue, driven by robust demand in the AI sector.
Bullish Outlook And Growth Projections
During the earnings conference call, a Marvell executive delivered a series of bullish forward-looking projections.
Marvell now expects fiscal 2027 revenue to grow more than 30% year-over-year to nearly $11 billion, and data center revenue to increase close to 50% year-over-year in fiscal 2028.
The interconnect business is expected to grow more than 50% year-over-year as well. On the customer front, the executive said Marvell is winning new business and expects to supply DCI modules to all five major U.S. hyperscalers this year.
The company also confirmed it remains on track for Celestial AI’s CPO revenue to reach a $500 million annualized run rate by the fourth quarter of fiscal 2028, with that figure expected to double to $1 billion by the fourth quarter of fiscal 2029.
CEO Sees Accelerating Data Center Momentum
CEO Matt Murphy highlighted expectations for accelerated revenue growth into fiscal 2027, supported by strong data center momentum and record bookings.
For the first quarter, Marvell guided for revenue of approximately $2.40 billion and adjusted earnings of roughly 79 cents per share, reflecting continued confidence in its strategic positioning within the fast-growing data center market.
Analyst Consensus & Recent Actions
The stock carries a Buy Rating with an average price target of $118.12. Recent analyst moves include:
- Evercore ISI Group: Outperform (Lowers Target to $133.00) (Mar. 4)
- Morgan Stanley: Equal-Weight (Lowers Target to $95.00) (Mar. 2)
- UBS: Buy (Raises Target to $120.00) (Feb. 23)
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Marvell Technology, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: Weak (Score: 2.68) — Indicates a challenging valuation landscape.
- Growth Rank: Moderate (Score: 60.54/100) — Reflects solid growth prospects.
- Momentum Rank: Moderate (Score: 56.88/100) — Shows decent market momentum.
The Verdict: Marvell Technology’s Benzinga Edge signal reveals a mixed but promising scenario. While the Value score suggests a premium valuation that could limit upside, the solid scores in Growth and Momentum indicate the stock could continue to perform well if market conditions remain favorable.
Top ETF Exposure
- iShares Future AI & Tech ETF (NYSE:ARTY): 3.62% Weight
- SPDR S&P Semiconductor ETF (NYSE:XSD): 3.28% Weight
- Fidelity Disruptive Technology ETF (NASDAQ:FDTX): 4.39% Weight
Significance: Because MRVL carries significant weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
MRVL Price Action: Marvell Technology shares were up 11.38% at $84.29 during premarket trading on Friday.
Image via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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