Analysts are intrested in these 5 stocks: ( (MRVL) ). Here is a breakdown of their recent ratings and the rationale behind them.
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Marvell Technology is back in the spotlight as BofA analyst Vivek Arya upgrades MRVL to Buy, lifting the price objective to $110 from $90 while the stock trades near $75.68. The call hinges on a re-acceleration in growth, stronger visibility around artificial intelligence demand, and new custom chip opportunities with cloud giants.
Arya highlights Marvell’s leverage to AI optical connectivity and growing role in Microsoft’s custom XPU chip program, while also seeing the Amazon XPU transition year as largely behind it. For the first time in years, out-year estimates are moving up meaningfully, with FY27 and FY28 sales forecasts raised by 8% and 12% and projected EPS growth above 30% annually.
The analyst sees Marvell’s acquisition of Celestial AI as a strategic move ahead of the next big shift to co-packaged optics expected around 2028 and beyond. At about 16 times estimated 2027 earnings and roughly 4 times enterprise value to sales, the stock looks inexpensive next to peers trading closer to 29 times earnings and 9 times sales.
A key upside driver is Marvell’s expanding custom chip pipeline, with estimates of roughly $2 billion in revenue for 2027 and $4 billion for 2028 tied to large XPU customers like Amazon and Microsoft. While Marvell’s XPU content is lower because it does not bundle high-bandwidth memory, that structure helps avoid volatile memory costs and keeps pricing more competitive.
Marvell is also expected to benefit from AI data center upgrades as optical DSP demand grows when networks move from 800G to 1.6T, potentially lifting dollar content per system by over 30%. Combined with broad intellectual property in CPU, networking, optical, memory, and security, Arya sees the XPU attach business compounding at more than 100% a year toward $3 billion and notes the stock could catch up after lagging the SOX index and possibly gain from future index inclusion, though investors should watch risks from lower free cash flow margins and intense competition in AI chips.