Key Highlights
- Fourth-quarter earnings per share reached $0.80 with revenue totaling $2.22 billion, exceeding forecasts
- Data center segment generated $1.65 billion, marking a 21% year-over-year increase
- First-quarter revenue outlook of $2.4 billion surpassed analyst expectations of $2.28 billion
- BofA’s Vivek Arya elevated MRVL rating to Buy from Hold, setting a $110 price target
- Benchmark Research upgraded to Buy with an ambitious $130 price objective
Shares of Marvell Technology (MRVL) surged more than 11% during Friday’s premarket session following the semiconductor company’s impressive fourth-quarter financial performance.
The semiconductor manufacturer delivered adjusted earnings of $0.80 per share alongside $2.22 billion in quarterly revenue. These figures edged past analyst projections of $0.79 per share and $2.21 billion in sales.
The data center division produced $1.65 billion in revenue, topping the Street’s $1.63 billion forecast while representing a 21% climb compared to the prior-year period.
Marvell Technology, Inc., MRVL
Chief Executive Mark Murphy indicated that revenue growth on a year-over-year basis should gain momentum throughout fiscal 2027. He highlighted exceptional booking activity and persistent data center segment strength.
For the complete fiscal 2026 period, Marvell delivered $8.195 billion in revenue, representing a substantial 42% annual increase.
The shares had declined 11% year-to-date prior to the earnings announcement, making Friday’s surge a significant recovery.
Wall Street Analysts Boost Ratings
Susquehanna analyst Christopher Rolland maintained his Positive stance with a $100 price objective, describing Marvell’s opportunities spanning custom ASICs, interconnect solutions, and photonics as “robust.”
Benchmark Research’s Cody Acree took a more bullish approach, upgrading to Buy from Neutral while establishing a $130 target. Acree noted that while Marvell might be splitting Amazon’s upcoming Trainium 3 design work with Alchip, this development “ultimately doesn’t matter in the overall grand scheme” considering the company’s broader expansion catalysts.
Multiple other Wall Street firms increased their price objectives, pointing to the semiconductor company’s artificial intelligence-driven expansion trajectory.
Revenue Growth Catalysts
While Marvell’s custom artificial intelligence chip operations—ASICs—capture significant investor focus, substantial momentum stems from its networking products deployed within data centers.
Management projects interconnect revenue will expand by over 50% during fiscal 2027.
The company completed two strategic acquisitions to strengthen this business segment. It acquired optical-networking specialist Celestial AI for $3.25 billion and interconnect technology provider XConn for $540 million.
The first-quarter outlook also exceeded Wall Street’s projections. Management forecast $0.79 in earnings per share with $2.4 billion in revenue. Analysts had anticipated $0.74 EPS alongside $2.28 billion in sales.
Major cloud providers continue aggressive infrastructure investments. Microsoft, Alphabet, Amazon, and Meta are projected to allocate approximately $650 billion in combined capital expenditures this year, with substantial portions directed toward AI data center infrastructure—products that Marvell supplies.
Marvell wasn’t alone in delivering strong results this week. Broadcom announced above-consensus first-quarter numbers on Wednesday while providing robust second-quarter guidance. CEO Hock Tan indicated Broadcom has “line of sight” toward AI-related revenue surpassing $100 billion in 2027. Broadcom shares dipped 0.6% in Friday’s premarket following Thursday’s 4.8% advance.
One consideration for investors: both Marvell and Broadcom maintain significant customer concentration among a handful of hyperscale clients. Market participants have monitored whether Marvell faces competitive pressure at Amazon or Microsoft. The fourth-quarter performance may temporarily alleviate these concerns.
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