Key Highlights
- Oppenheimer increased MRVL’s price target from $150 to $170 while maintaining an Outperform rating
- Shares gained 22% across five consecutive trading days — the longest rally in more than a year
- The company develops custom AI chips (ASICs) for Amazon and expects to supply Microsoft starting in late 2026
- ASIC revenue is projected to reach $4 billion next year and exceed $10 billion by 2028
- Barclays upgraded MRVL to Overweight on April 9 with a $150 target; Cantor Fitzgerald boosted its target to $120
Marvell Technology has enjoyed a notable surge in recent trading sessions. The semiconductor company posted gains across five consecutive days, accumulating a 22% increase — marking its longest winning streak in over 12 months. Looking at the broader picture, shares have climbed 151% over the trailing year.
Marvell Technology, Inc., MRVL
This momentum has been fueled by growing optimism surrounding the company’s AI and data-center chip operations, with several prominent Wall Street firms upgrading their outlook on the stock in recent sessions.
On Tuesday, Rick Schafer from Oppenheimer lifted his price target on MRVL from $150 to $170 while reaffirming his Outperform rating. Based on Tuesday’s closing price near $134, this target suggests potential upside of approximately 27%.
Schafer highlighted Marvell’s comprehensive lineup of copper and optical solutions as a significant competitive advantage. The firm produces digital signal processors that transform electrical signals into optical pulses used in fiber optic connections — essential components in today’s AI-powered data center architecture. Schafer projects that data center operations will account for three-quarters of Marvell’s total revenue in the current year.
Custom Chip Business Gaining Traction
Beyond its networking portfolio, Marvell’s custom AI chip division — specifically application-specific integrated circuits (ASICs) — is capturing increased investor attention. The company currently manufactures ASICs for Amazon and has plans to begin production for Microsoft during the latter half of 2026.
During a recent investor conference in Europe organized by Oppenheimer, Marvell leadership indicated that ASIC revenue is projected to double next year, reaching $4 billion. Looking further ahead, the company aims to generate more than $10 billion in ASIC revenue by 2028.
Following that investor meeting, Schafer adjusted his earnings projections upward. He now expects 2027 EPS of $3.92, up from his prior $3.84 estimate, and 2028 EPS of $5.53, revised from $5.35. These figures exceed the current Street consensus of $3.84 and $5.46 for the respective years.
On Wednesday morning, MRVL declined 1.7% to $131.55 in pre-market activity as some traders locked in gains following the recent rally. S&P 500 futures traded relatively flat as a short-lived bounce related to U.S.-Iran ceasefire negotiations lost momentum.
Multiple Firms Upgrade Their Stance
Oppenheimer isn’t the only firm growing more bullish on Marvell. On April 9, Barclays elevated its rating from Equal Weight to Overweight while increasing its price target from $105 to $150. Analyst Tom O’Malley cited industry data suggesting optical port shipments will double in 2026 and double again in 2027.
Barclays projects Marvell’s optical business could expand roughly 90% in both the current year and next, even after factoring in potential market share gains by competitor Broadcom.
Also on April 9, Cantor Fitzgerald increased its price target from $100 to $120 while maintaining a Neutral rating. The firm acknowledged continued strength in AI demand but noted that investors remain somewhat cautious following recent portfolio adjustments. Cantor suggested that memory and semiconductor equipment manufacturers might be the first beneficiaries if risk appetite improves.
As of Wednesday’s pre-market trading, MRVL was changing hands at $131.55.
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