Marvell Technology (MRVL) Stock Forecast & Price Target

Marvell Technology is positioned for robust growth, particularly in the switching segment, which is anticipated to surpass the +18% year-over-year baseline target in FY27. The data center business is expected to expand in alignment with hyperscaler capital expenditures, also projected at +18% year-over-year, underscoring strong demand within this market. Additionally, management forecasts that the optics portion will outpace the already optimistic growth expectations for the data center segment, indicating a sustained growth trend driven by increased capital investment.

Marvell Technology faces several fundamental risks that contribute to a negative outlook on its stock, primarily stemming from the rapid decline of hard disk drives (HDDs) and a surge in competition within the solid-state drive (SSD) controller segment. Additionally, the company's limited traction in key growth areas such as 5G, cloud computing, and the automotive market raises concerns about its ability to maintain market presence, particularly in hyperscale data centers where it struggles to penetrate. Furthermore, an increased risk of losing market share due to heightened competition, combined with the concentration of customers and end-markets, compounds the challenges that Marvell Technology must navigate in the evolving semiconductor landscape.