In June, Nvidia (NVDA) CEO Jensen Huang said Marvell Technology (MRVL) could become a trillion-dollar company. The remark caught Marvell’s CEO, Matt Murphy, by surprise, although he acknowledged that the company has an opportunity large enough to support such an outcome.
Investors are now putting a much higher value on that possibility. On Tuesday, Oct. 6, Marvell used its investor day to set long-term revenue targets, becoming the latest artificial intelligence (AI) infrastructure company to raise its financial expectations in recent months. The stock rose 5.8% that day.
For FY2031, Marvell is aiming for a revenue of $70 billion-$90 billion. Compared with the $8.2 billion it generated in FY2026, which ended in January 2026, that would be an enormous increase. Custom AI chips are expected to account for a substantial portion of that revenue, as Marvell expects the business to generate about $30 billion by FY2031.
There is more to the plan than custom chips, though. Marvell also expects to benefit from demand for other data center components, including networking chips and technology that allows AI systems to process data faster. Moreover, the company lifted its FY2028 revenue target to approximately $20 billion from $18 billion previously. For FY2029, Marvell expects more than $12 billion in custom revenue.
The signs were already visible in the company’s Q2 FY2027 results. AI-driven data center demand was becoming an increasingly important part of Marvell’s quarterly performance, and CEO Matt Murphy noted at the time that AI-related bookings remained “exceptionally robust.” He also said growth should accelerate through the rest of FY2027.
Against this backdrop, here's how to play MRVL stock.
About Marvell Stock
Marvell Technology, headquartered in Wilmington, Delaware, develops semiconductor products for data centers, cloud computing, and communications networks. Its portfolio includes networking, storage, processors, optical connectivity, and custom chips.
With a market cap of about $250 billion, the company provides technology that helps move and process data faster and more efficiently across modern AI and computing workloads.
Despite some turbulence today, MRVL stock has performed exceptionally well recently. Marvell’s shares have gained 188% over the past 52 weeks and are up 213% year-to-date (YTD). They’ve added another 18% over the past month, although the last five trading sessions have seen the stock go flat.
The overall solid performance comes with a premium valuation. MRVL stock is currently trading at 94.25 times forward adjusted earnings and 30.71 times sales, putting the stock above both industry levels and its five-year historical averages.
The company also pays an annual dividend of $0.24 per share, giving the stock a yield of 0.08%. The latest payment of $0.06 per share is scheduled for Thursday, Oct. 29, for shareholders of record as of Friday, Oct. 9.
Surpasses Q2 Earnings
On Thursday, Aug. 27, Marvell reported its Q2 FY2027 earnings results and beat Street expectations on both the top and bottom lines. Revenue jumped 36.5% year-over-year (YoY) to $2.74 billion, while analysts had expected $2.71 billion. The figure also came in $39 million above the midpoint of its previous management guidance.
The Data Center business drove much of that performance with its revenue growing 46% YoY as demand remained strong across the portfolio. AI-related bookings remained exceptionally robust, giving investors another reason to believe the current growth cycle has more room to run.
Non-GAAP gross margin came in at 58.9% compared with 59.4% a year earlier. Revenue growth therefore did not translate into YoY gross margin expansion. However, Marvell still found plenty of operating leverage elsewhere. Non-GAAP operating income climbed 43.6% from the year-ago value to $1 billion, with non-GAAP operating margin improving to 36.6% from 34.8%.
That operating leverage flowed through to the bottom line as well. Non-GAAP net income increased 47.9% from the last year’s quarter to $865.9 million. Adjusted EPS rose 40.3% from the year-ago value to $0.94, beating analyst expectations of $0.93. Operating cash flow also remained healthy at $605.5 million.
The stronger quarter gave management enough confidence to raise its outlook for FY2027 and FY2028. Broad-based Data Center strength supported the higher outlook. Strong Connectivity demand provided another boost. Management also expects Custom to accelerate significantly beginning in the second half of FY2027.
Whereas, for Q3, management expects revenue to come in at $3.15 billion, plus or minus 5%, with non-GAAP diluted net income projected at $1.10 per share, plus or minus $0.05.
On the other hand, analysts expect Q3 FY2027 EPS to rise 27.4% YoY to $0.79. For full FY2027, they project earnings growth of 42.2% to $3.05, and then earnings to jump another 78.4% to $5.44 in FY2028.
What Do Analysts Expect for MRVL Stock?
Wall Street has responded to the stronger outlook by raising price targets. Christian Schwab of Craig Hallum keeps his “Buy” rating while lifting the price target to $380 from $300. Rick Schafer of Oppenheimer has also stuck with a “Buy” rating and raised his target to $425 from $325.
Quinn Bolton of Needham is following the same path. He maintains a “Buy” rating and raised his price target to $400 from $350. The broader analyst view now lands in “Strong Buy” territory. Of the 38 analysts covering Marvell, 29 rate its stock a “Strong Buy,” three analysts have given it a “Moderate Buy” rating, while six have opted for “Hold.”
To that end, the average price target stands at $334.49 and represents a potential upside of 23%. The Street-high target reaches $450, which points to a gain of 66% from current levels.
On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.