Marvell’s (MRVL) shares climbed over 2% on Thursday morning, extending its roughly 15% gain over the last five days. This comes as banking heavyweight Citi (C) joined other analysts in reaffirming confidence in the U.S. semiconductor company ahead of its first-quarter 2027 earnings on Wednesday, May 27.
Meet Samuel – Your Personal Investing Prophet
200% short exposure to AMZN with AMZOWhy Citi Is Bullish on Marvell Stock
Citi analyst Atif Malik reaffirmed his Buy rating on MRVL and lifted his MRVL price target by 82%, from $118 to $215, suggesting more than 12% upside. Malik sees higher earnings potential for Marvell from continued solid demand for Amazon’s (AMZN) Trainium 2 next-generation AI accelerators.
Marvell co-designed the Trainium 2, the second-generation application-specific integrated circuit (ASIC) tailored for massive AI workloads. The semiconductor company helped to develop the accelerator in partnership with Amazon Web Services, the tech giant’s cloud computing unit.
What Wall Street Expects from Marvell’s Q1 Earnings
Malik’s bullish rating comes as Wall Street expects Marvell to have significantly improved its sales and profitability during the quarter that ended on May 2.
Specifically, they see its revenue jumping by about 26%, from $1.90 billion to $2.40 billion. In addition, its earnings per share are expected to hit $0.79, up by about 27% from $0.62 posted a year ago.
In the same vein, other analysts are also bullish on Marvell’s potential earnings boost from the Trainium.
For instance, Wells Fargo analyst Aaron Rakers reaffirmed his Buy rating on MRVL and elevated this price target from $135 to $195, indicating about 12% upside. Rakers noted that he sees “significant AWS Trainium expansion ahead.”
Chipping in, Oppenheimer analyst Rick Schafer also raised his MRVL price target from $170 to $200, implying about 4% upside. Schafer believes demand for Marvell’s custom ASIC and AI networking products will fuel its Q1 earnings and lift the company’s Q2 forecast.
Is Marvell a Good Stock to Buy?
Across Wall Street, analysts remain highly bullish on Marvell’s shares and have a Strong Buy rating on the stock. This is based on 23 Buys and four Holds issued over the past three months.
However, the average MRVL price target of $158.75 implies more than 17% downside risk from current trading levels.
