Marvell Technology (MRVL) Stock Forecast & Price Target

Marvell Technology is positioned for substantial growth, particularly in its Switching segment, which is projected to exceed the baseline growth target of +18% year-over-year for fiscal year 2027. Additionally, the company’s Data Center business is anticipated to grow in line with hyperscaler capital expenditures, also forecasted at +18% year-over-year, indicating a strong alignment with market trends. Furthermore, management anticipates that the Optics segment will outpace this growth, continuing a trend of exceeding historical annual capital expenditure growth rates over the past four to five years.

Marvell Technology faces multiple fundamental risks that adversely affect its outlook, including a faster-than-expected decline of hard disk drives (HDDs) and increasing competition within the solid-state drive (SSD) controller segment. Additionally, the company has struggled to gain traction in critical areas such as 5G, cloud, and automotive markets, as well as in penetrating the hyperscale data center market with its Ethernet switch and physical layer solutions. Furthermore, issues related to customer and end-market concentration, alongside challenges in integrating acquisitions, contribute to a heightened risk profile for the company's financial performance.