Is MRVL Stock a Buy, Sell or Hold at a P/S Multiple of 7.67X?

Marvell Technology MRVL is currently trading at a forward 12-month price-to-earnings (P/S) ratio of 7.67X, which is higher than the Zacks Electronics - Semiconductors sector’s average of 7.44X. The company is trading at a premium, as suggested by the value score of D. Given MRVL’s premium valuation, investors might be wondering: Is this an opportunity to buy, or are there deeper challenges that could keep the stock in check?

MRVL Forward 12-Month (P/S) Valuation Chart

AI Race Among Global Corporations Driving MRVL

Marvell Technology is gaining from the AI wave, which has built a strong demand for both custom silicon and interconnect semiconductor products. Products like AI XPU, digital signal processors (DSP), data center interconnect switches, application-specific integrated circuit (ASIC), and Active Electrical Cable play a crucial role in supporting hyperscalers, data centers and AI factories, hence driving their demand.

Marvell Technology expects its custom silicon business to roughly contribute to one-fourth of its overall data center revenues and grow at least 20% next year. The company recently unveiled 18 XPU and XPU-attach socket design wins, among which many are already in volume production. In the connectivity space, the volume shipments of MRVL’s next-generation 200G per lane 1.6T PAM DSPs are also a tailwind.

Marvell Technology’s data center segment has experienced rapid growth in the past seven quarters. In the third quarter of fiscal 2026, Marvell Technology’s data center segment posted revenues of $1.52 billion, up 37.8% year over year, led by strong traction in custom XPU silicon, electro-optic interconnect products and next-generation switches. As the hyperscalers are expanding AI clusters rapidly, the use of high-bandwidth interconnects, custom ASICs, PAM4/800G, and DCI is rising.

Marvell Technology’s Ara 200G/lambda 1.6T PAM4 optical DSP for AI scale-out is another product that improves AI networking. Furthermore, Marvell Technology’s Teralynx switch telemetry API is a software layer integrated into MRVL’s Teralynx switching platform, providing real-time visibility and analytics into network traffic, latency, and congestion, allowing operators to monitor performance and optimize AI infrastructure efficiency across data centers.

MRVL Gains From Acquisitions and Partnerships

Marvell Technology recently announced the acquisition of Celestial AI, which will speed up its momentum in the interconnect space as AI clusters grow more complex. Celestial AI’s high-performance photonic compute interconnect IP will position Marvell Technology at the heart of next-generation AI data center architectures.

Marvell Technology has also partnered with industry leaders, including Amazon’s AMZN Amazon Web Services (“AWS”) and NVIDIA NVDA. Marvell Technology has a multi-year strategic collaboration with Amazon Web Services to supply connectivity products for AI and data-center workloads.

Marvell Technology has also partnered with NVIDIA to integrate NVIDIA’s NVLink Fusion technology into MRVL’s custom cloud-platform silicon solution. These partnerships with Amazon and NVIDIA have opened gates for MRVL among hyperscalers and cloud providers, all the while benefiting from top AI technologies.

How MRVL Is Outperforming Its Rivals

The rapid growth of AI workload and allied infrastructure has attracted multiple players in this space. Semiconductor giants, including Broadcom and Advanced Micro Devices AMD in the AI accelerator market and Micron Technology in the HBM space, operate alongside Marvell Technology, giving it healthy competition. Advanced Micro Devices is a strong player in the custom silicon solutions and AI accelerator space with its semi-custom SoC offerings powering numerous data centers.

Advanced Micro Devices’ reconfigurable Alveo Adaptable Accelerator Cards are used to speed up compute-intensive applications in data centers. Broadcom’s advanced 3.5D XDSiP packaging platform is specifically designed to enhance the performance and efficiency of custom AI XPUs for AI accelerators. Micron Technology has made significant strides in AI-optimized memory solutions, with MU’s HBM3E products gaining attention for their superior power efficiency and bandwidth.

However, MRVL’s rapid expansion of its portfolio has helped it keep pace with the market trend. Marvell Technology is constantly deepening its expertise in the AI space. MRVL is developing a co-packaged copper system with 2.5m direct attach cable and a Co-packaged optics switch system, which will enable companies to use high-speed networking to accelerate memory-intensive AI workloads. MRVL has Structera CXL and Alaska P PCIe 6 retimer over cable for AI scale-up while maintaining signal integrity.

These factors are contributing to MRVL’s top-line and bottom-line growth. The Zacks Consensus Estimates for MRVL’s fiscal 2026 revenues and earnings show a growth rate of 42% and 81%, respectively. MRVL’s fiscal 2026 earnings have been revised upward in the past 60 days.

MRVL’s 200-Day and 50-Day SMA Suggest Bullish Trend

SMCI’s shares are trading above the 200-day and 50-day moving averages, indicating a bullish trend.

Conclusion: Buy MRVL Stock Now

Marvell Technology has strong long-term fundamentals supported by its strong foothold in the data center, deep AI portfolio and high-speed networking space. Furthermore, the company has strong partnerships with industry leaders in hyperscale, AI and semiconductor space, making MRVL an indispensable link in the AI chain.

Considering all these factors, we suggest that investors should buy this Zacks Rank #2 (Buy) stock at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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

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