Analysts at Benchmark and Bank of America moved Marvell Technology (NASDAQ:MRVL) to Buy after the company released quarterly results and a fiscal outlook that signaled renewed momentum in AI-related demand for its data-center and connectivity products.
Management said on Thursday that revenue for fiscal 2028 is expected to be nearly $15 billion, a figure that surpassed the prior Wall Street consensus of $12.92 billion. The stronger-than-expected FY28 projection drove Marvell shares higher by more than 11% in Friday premarket trading.
The company also raised its fiscal 2027 outlook, now anticipating revenue growth of greater than 30% year over year to nearly $11 billion, up from an earlier forecast of about $10 billion. That revised FY27 target, together with the FY28 projection, prompted analysts to reassess forward estimates for both sales and earnings.
Bank of America upgraded its rating on Marvell from Neutral to Buy and increased its price target to $110 from $90. Analysts at the bank cited improving visibility across several AI-related drivers and said the company’s latest earnings call strengthened confidence in Marvell’s leverage to AI optical connectivity. They also pointed to the potential for a Microsoft custom chip program to be successful and noted signs that Marvell is "turning the corner on Amazon XPU transition year," according to analysts led by Vivek Arya.
BofA raised its longer-term forecasts as part of the update, increasing FY27 and FY28 sales estimates by roughly 8% and 12%, respectively, and boosting EPS projections by about 15% and 12% for those years. The bank now models adjusted EPS of $3.82 in FY27, which would represent a rise of 34% year over year, followed by $5.43 in FY28, implying growth of roughly 42% for that year.
Benchmark’s Cody Acree also upgraded Marvell to Buy and set a $130 price target, highlighting multiple growth drivers across the company’s data-center and connectivity franchises. Acree said Marvell is benefiting from broadly accelerating demand trends, improving extended visibility, and guidance that points to revenue and earnings materially above consensus in coming years.
On a reported basis, Marvell posted fourth-quarter revenue of $2.219 billion, marginally ahead of consensus estimates, and delivered earnings per share of $0.80, which likewise slightly exceeded forecasts. Data-center revenue, a key component tied to AI infrastructure initiatives, amounted to $1.651 billion, rising 9% sequentially and 21% year over year.
For the first quarter, management guided revenue to about $2.40 billion, implying approximately $122 million of upside versus consensus estimates, and projected EPS of about $0.79.
Acree emphasized several near-term catalysts underpinning the outlook: accelerating demand for electro-optics connectivity; Marvell’s leadership position in high-speed optical digital signal processors as networks transition from 800G to 1.6T; improving switching revenue; and expanding opportunities in retimers and active electrical cables. He also expects Marvell’s custom silicon business to continue scaling, supported by engagements with hyperscale customers such as Amazon and Microsoft.
Despite the recent rise in Marvell’s share price, Benchmark’s Acree noted that the company’s valuation remains particularly attractive relative to the broader AI-semiconductor peer group.
Summary
Marvell’s raised fiscal guidance and quarterly results prompted Buy upgrades from Bank of America and Benchmark. Strong FY28 revenue guidance near $15 billion and an upgraded FY27 outlook drove analyst revisions to sales and earnings estimates, while company-level catalysts in optical connectivity, switching, and custom silicon engagements with hyperscalers underpinned the bullish view.