Marvell stock jumps on AI networking demand: Is more upside coming?

Shares of Marvell Technology MRVL surged on Wednesday as Wall Street analysts raised price targets ahead of the chipmaker’s upcoming quarterly earnings report, citing accelerating demand for artificial intelligence infrastructure and custom AI processors.

Marvell stock climbed more than 6% in morning trading to around $193 after a series of bullish analyst notes highlighted the company’s growing exposure to hyperscale AI spending and custom chip deployments.

The rally adds to an already remarkable run for the stock in 2026, with shares up more than 100% year to date as investors increasingly focus on the role of custom AI silicon and networking infrastructure in next-generation data centers.

Marvell is scheduled to report fiscal first-quarter 2027 results on May 27.

The company previously guided for quarterly revenue of approximately $2.4 billion (approx. Rs 671 billion) and adjusted earnings of $0.79 per share, representing roughly 27% year-over-year growth for both revenue and earnings.

Analysts raise targets ahead of earnings

Several Wall Street firms lifted their price targets on Marvell ahead of earnings, arguing the company remains well positioned to benefit from accelerating AI infrastructure spending.

Melius Research raised its price target on Marvell to $220 from $140, while B. Riley increased its target to $205 from $156.

Wells Fargo lifted its target to $195 from $135 and maintained its Overweight rating on the shares.

“While MRVL’s > 30x CY27 P/E certainly makes for a tougher set-up into F1Q27 print (5/26), we see AWS Trainium deploy, XPU-attach ramp, and continuous Interconnect momentum as driving sufficient upside to support our OW rating; PT to $195 (was $135),” Wells Fargo wrote.

Citi also raised its target to $215 from $118, while Oppenheimer lifted its target to $200 from $170 and reiterated an Outperform rating.

Analysts pointed to strong momentum in AI networking, optical connectivity, and custom ASIC demand as key drivers behind the bullish outlook.

Oppenheimer said the top four cloud service providers are expected to spend more than $710 billion (approx. Rs 198.5 trillion) this year, helping support demand for AI infrastructure suppliers such as Marvell.

Evercore similarly maintained an Outperform rating, highlighting Nvidia’s strategic investment in Marvell’s optical connectivity business and continued strength in custom XPU deployments.

Custom AI processors drive growth outlook

Investor optimism has increasingly centered around Marvell’s positioning in the custom AI processor market.

The company significantly increased its fiscal 2027 revenue guidance earlier this year to $11 billion (approx. Rs 3.1 trillion) from a prior estimate of $9.5 billion (approx. Rs 2.7 trillion), implying annual revenue growth of roughly 34%.

Marvell also expects revenue growth to approach 40% in fiscal 2028.

The company recently acquired Celestial AI and XConn Technologies, businesses focused on data-center interconnect and switching technologies that are expected to contribute approximately $250 million (approx. Rs 69.9 billion) in revenue during fiscal 2028.

Management has also said Marvell has secured more than 20 design wins for custom AI processors scheduled to enter production during fiscal 2028 and fiscal 2029.

Bloomberg estimates Marvell could eventually capture between 20% and 25% of the custom AI processor market over time.

Based on Bloomberg's estimate that the overall custom AI processor market could reach $118 billion (approx. Rs 33 trillion) by 2033, Marvell's custom AI revenue alone could potentially approach $30 billion (approx. Rs 8.4 trillion) annually over the long term.