Bull of the Day: Marvell Technology (MRVL)

Marvell Technology (MRVL) is a Zacks Rank #1 (Strong Buy) fabless semiconductor company that designs analog, mixed signal, and digital signal processing chips used to move, store, and secure data.

Its products sit at the core of modern data infrastructure, powering hyperscale data centers, enterprise networking, carrier infrastructure, and edge applications. Marvell delivers highly integrated systems on a chip and system in a package solution, largely built on ARM architectures, to enterprise and consumer customers around the world.

The stock has pulled back since reporting earnings, giving investors an entry point into a high quality data infrastructure semiconductor leader with expanding exposure to AI driven data center and networking demand.

About the Company

Marvell is a critical supplier of custom and merchant silicon across data center and networking markets. Its product portfolio includes application processors, ethernet controllers and switches, networking and communications processors, interconnect and optical DSP solutions, and custom ASICs for hyperscale customers.

The company also maintains meaningful exposure to storage, carrier infrastructure, industrial, and consumer markets, though the business is now firmly anchored in data infrastructure.

MRVL is valued at $72 billion and has a Forward PE of 30. The stock has Zacks Style Scores of “F” in Value, but “A” in Momentum.

Q3 Earnings Beat

Marvell delivered a solid third quarter earnings beat, showing impressive growth of its data center driven growth profile. The company reported adjusted EPS of $0.76, edging past consensus expectations, on revenue of $2.07B, also slightly ahead of estimates and a new quarterly record.

Management highlighted strong demand across data center products as the primary driver, with data center revenue up 38% year over year to $1.52 billion. Non-GAAP gross margin came in at 59.7%, reflecting continued mix shift toward higher value interconnect and custom silicon solutions.

Guidance was equally encouraging, with Marvell guiding fourth quarter revenue to $2.20 billion at the midpoint, ahead of expectations and implying more than 20% year over year growth, with adjusted EPS of $0.74 to $0.84. Management now expects full year revenue growth to exceed 40% and sees data center revenue accelerating into next year.

The company also announced the acquisition of Celestial AI, a transformational move that strengthens Marvell’s position in next generation optical interconnect for AI data centers. While revenue contributions from Celestial AI are expected to begin in the second half of fiscal 2028, management outlined a clear path to a $500 million run rate by fiscal 2028 and $1 billion by fiscal 2029, reinforcing confidence in Marvell’s long term growth trajectory tied to AI scale up infrastructure.

Estimates Head Higher

Analysts have raised earnings estimates slightly higher for both the current quarter and next quarter. Looking at the current year, estimates have moved from $2.80 to $2.84 since earnings.

For the next year, estimates have gone from $3.34 to $3.57 over the last 30 days. This is a jump of 7%, which shows analysts' bullish expectations for the company down the road.

Marvell Technology, Inc. Price and Consensus

Marvell Technology, Inc. price-consensus-chart | Marvell Technology, Inc. Quote

Price targets have been going higher with those estimates:

Citigroup resumed coverage, putting a Buy on MRVL with a $114 target.

B. Riley Securities reiterated MRVL with a Buy and raised their price target to $130. That target is 50% higher than current trading levels.

The Technical Take

MRVL was trending nicely higher into earnings and then made a new high not seen since February. But some recent selling in the semi space has brought the stock lower, with investors seeing a move from above $100 to the mid-$80s.

Let’s look at some moving averages:

21-day: $87.50

50-day: $88.00

200-day: $74

That stock held the Fibonacci support areas at $87, but that has given away along with the smaller moving averages. The $75-80 area was the prior support area in November and could be a good entry spot for investors looking for a rally into 2026.

In Summary

Marvell checks the key boxes investors want: accelerating earnings, rising estimates, strong momentum, and deep exposure to long duration AI and data center spending.

The recent pullback appears driven more by sector wide semiconductor volatility than any change in fundamentals, especially given management’s confident outlook and improving revenue visibility.

With analysts raising forecasts, price targets moving higher, and a multiyear growth runway tied to custom silicon and optical interconnect, MRVL looks well positioned for a renewed move higher. For investors willing to look past short- term volatility, the current consolidation offers an attractive opportunity to build exposure to a high quality data infrastructure leader heading into 2026.

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This article originally published on Zacks Investment Research (zacks.com).

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