Marvell Technology (MRVL) is scheduled to announce its fiscal first-quarter earnings on May 27. MRVL stock has rallied 131% year-to-date, driven by robust demand for its custom AI chips and optical connectivity solutions. On Friday, Marvell stock rose about 3% as top Stifel analyst Tore Svanberg increased his price target to $210 from $140 and reiterated a Buy rating. The analyst expects the company to deliver upbeat revenue for Q1 FY27.
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Explore AMZO for 2X short leverage on AMZNMeanwhile, Wall Street expects MRVL to report earnings per share (EPS) of $0.79, reflecting 27.4% year-over-year growth. Revenue is estimated to rise by about 27% to $2.40 billion.
Here’s What Stifel Analyst Expects from Marvell’s Q1 Results
Svanberg expects Marvell’s Q1 FY27 revenue to surpass his estimate of $2.4 billion (up 8.2% sequentially). The 5-star analyst expects top-line upside to again come from the data center business, driven by optical interconnects and the continued expansion of Marvell’s leading XPU program.
Furthermore, Svanberg expects Marvell to guide Q2 FY27 revenue above his current estimate of about $2.59 billion (up 8% sequentially), fueled by accelerating 1.6T (Terabit) optical deployments, Amazon’s (AMZN) AWS (Amazon Web Services) Trainium 3 production, and increasing momentum in XPU-Attach.
Stein sees optical interconnects, scale-across solutions, and third-party merchant XPU sales emerging as near-term growth drivers for Marvell. He noted that management now expects interconnects to grow by more than 50% year-over-year in FY27 (up from the prior forecast of 30%), while overall data center revenue is expected to surge more than 40% in FY27 (up from the prior outlook of 25%) and rise by another 50% in FY28.
Recently, top Wells Fargo analyst Aaron Rakers raised his price target for MRVL stock to $195 from $135 and reiterated a Buy rating, saying, “Significant AWS Trainium Expansion Ahead.”
Is MRVL a Good Stock to Buy?
Heading into Q1 FY27 earnings, Wall Street has a Strong Buy consensus rating on Marvell Technology stock based on 23 Buys and four Holds. The average MRVL stock price target of $161.67 indicates about 18% downside risk following the stellar rally so far this year.
