Marvell Technology (MRVL) stock surged 10% in Wednesday’s pre-market trading after the semiconductor company announced better-than-expected third-quarter results. The company expects its data center revenue to surge by 25% next year. Following Marvell’s Q3 FY26 print, a top analyst at Summit Insights upgraded his rating for the stock to Buy from Hold, while Goldman Sachs raised its price target but retained a Hold rating.
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Meanwhile, Marvell also announced the acquisition of Celestial AI, a Photonic Fabric technology platform, for at least $3.25 billion.
Summit Insights Upgrades MRVL Stock on Solid Top-line Growth Expectations
Summit Insights analyst Kinngai Chan upgraded Marvell Technology stock to Buy from Hold, as he expects that solid revenue growth in the next two years will drive better-than-expected earnings and offset any concerns about gross margin pressure. The 5-star analyst contended that while MRVL’s near-term results and outlook were “somewhat disappointing,” the company is optimistic about its ability to grow its data center business by 25% in Fiscal 2027, followed by another 40% in Fiscal 2028.
Chan expects Marvell to benefit from increased port count and bandwidth for its electro-optical business. However, Chan sees the risk of “lumpy” shipments for MRVL’s AI ASIC (application-specific integrated circuit) programs. The analyst added that his industry checks indicate that AI capex will only accelerate in the next two years, with AI accelerators and interconnectivity benefiting the most from the massive investments.
Goldman Sachs Raises Price Target for Marvell Stock
Meanwhile, Goldman Sachs analyst James Schneider raised his price target for Marvell stock to $90 from $80 and reiterated a Hold rating. The 4-star analyst stated that he expects the stock to rise, given a “more constructive” outlook for Marvell’s data center ramp in 2026, driven by improved visibility in custom compute revenue. Schneider noted that the company expects 2027 data center revenue to increase by 40%, with custom compute revenue projected to double over this period.
Schneider added that Marvell’s Celestial AI acquisition expands its data center capabilities via the addition of optical interconnect solutions. Aside from strength in the company’s data center business, the analyst also noted indications of gradual recovery in MRVL’s traditional business (enterprise networking and carrier). This improvement is fueled by normalizing customer inventory and the adoption of new products.
Overall, Schneider views Marvell’s results as an “incremental medium-term positive for the stock given increased visibility into CY26 fundamentals.” That said, the analyst remains on the sidelines as there is not much clarity on the expansion of Marvell’s custom silicon customer base and on volume growth with existing customers. Schneider stated that he could be more positive on MRVL stock if his confidence about the company’s custom compute revenue growth in 2027 and beyond increases.
Is MRVL a Good Stock to Buy?
Currently, Wall Street has a Moderate Buy consensus rating on Marvell Technology stock based on 14 Buys and six Holds. The average MRVL stock price target of $99.39 indicates 7% upside potential.
These price targets/ratings could be revised as more analysts react to Q3 results.
