Marvell: XConn Acquisition Reinforces Data Center Interconnect Leadership and Supports Medium-Term Growth

William Blair analyst Sebastien Naji has maintained their bullish stance on MRVL stock, giving a Buy rating yesterday.

Sebastien Naji has given his Buy rating due to a combination of factors tied to Marvell’s strategic expansion in data center interconnects. He highlights that the acquisition of XConn Technologies meaningfully strengthens Marvell’s portfolio by adding high-lane-count PCIe and CXL switching capabilities that fill a prior product gap and align with the company’s UALink roadmap. This transaction is expected to be financially attractive, with management guiding to earnings accretion in the back half of fiscal 2027 and an incremental $100 million of revenue in fiscal 2028, which supports a constructive medium-term growth and profitability outlook.

Naji also underlines that integrating XConn’s Apollo switch family with Marvell’s existing SerDes, Ethernet, retimer, AEC, and Structera memory solutions positions the company more competitively against key peers such as Broadcom and Astera Labs in rack-scale data center deployments. The advanced switch architecture, featuring significantly higher lane counts and bandwidth than many rival offerings and a roadmap to next-generation CXL and PCIe standards, reinforces Marvell’s role in enabling low-latency, high-throughput connectivity for AI and cloud workloads. In conjunction with the earlier Celestial AI acquisition, he views this deal as further evidence that Marvell is methodically building a comprehensive platform for both scale-up and scale-out use cases across copper and optical layers, underpinning his positive stance on the stock.

In another report released yesterday, Melius Research also upgraded the stock to a Buy with a $135.00 price target.