Marvell Technology (MRVL) Stock Forecast & Price Target

Marvell Technology is well positioned for upside because its Data Center business is accelerating sharply, with revenues of $2.17 billion, up 18% sequentially and 46% year over year, driven by broad strength in optical interconnect, switching, and custom silicon. Management raised FY27/FY28 revenue outlooks to about $12.0 billion and $18.0 billion, while signaling Data Center growth above 60% and custom silicon more than doubling, reflecting deep hyperscaler engagements and long-cycle design wins that improve visibility. Further support comes from recovering Communications and other end markets, plus expanding content in AI infrastructure through Google, Microsoft, and Amazon-related programs, which should sustain growth and operating leverage.

Marvell Technology is exposed to cyclical weakness across storage, networking, and carrier infrastructure, and the weak Communications & Other segment guidance of about $500M versus roughly $589M consensus signals demand softness that could offset the expected data center rebound. Even though data center revenue is modeled to grow about 60% in FY27 and FY28, the outlook still depends heavily on a successful custom silicon ramp, stronger 800G and 1.6T adoption, and sustained hyperscale traction, any of which could underdeliver. Margins also face pressure from mix shifts, with non-GAAP gross margin guided to 58.0% in F3Q27 from 58.9% in F2Q27, while reported EPS may overstate underlying earnings quality because it excludes fairly aggressive stock-based compensation.