Marvell (MRVL) Stock Jumps as Three Analyst Raise Price Targets Ahead of Earnings

TLDR

• Susquehanna raised its MRVL price target to $230 from $100, keeping a Positive rating ahead of Wednesday’s earnings
• HSBC upgraded MRVL to Buy and raised its target to $300 from $85, citing an AI networking “supercycle”
• Morgan Stanley also raised its target on MRVL to $172 from $103
• MRVL stock jumped more than 6.5% in premarket trading on Tuesday, trading near $196.33
• Analysts see upside in Marvell’s optical interconnect, Custom XPU, and CXL businesses through fiscal 2027 and beyond

Marvell Technology (MRVL) stock climbed more than 6.5% in premarket trading on Tuesday after HSBC upgraded the chipmaker to Buy and set a price target of $300 — up from $85. The stock was trading near $196.33, close to its 52-week high of $198.40.

Marvell Technology, Inc., MRVL

The upgrade came alongside a separate price target raise from Susquehanna, which lifted its target to $230 from $100 while maintaining a Positive rating. Morgan Stanley also raised its target on the stock, moving to $172 from $103.

HSBC analyst Frank Lee said that despite MRVL already rallying 124% since March 30 — well ahead of the SOX index’s 71% gain in the same period — the market is still underestimating revenue growth from optical interconnects.

Lee said that upside to consensus forecasts is likely over the next two years. He also pointed to an ongoing memory shortage tied to agentic AI CPU demand as a potential driver for Marvell’s compute express link (CXL) total addressable market.

Marvell reports earnings on Wednesday, May 27. Analysts broadly expect the company to beat estimates.

Stifel expects Marvell to come in above its $2.40 billion revenue estimate for the April quarter, driven by data center operations — specifically optical interconnects and the company’s lead XPU program.

Cantor Fitzgerald also expects a modest beat for the April quarter, with July quarter guidance likely to be raised.

AI Customers Driving Outlook

Susquehanna highlighted strength in Marvell’s Inphi and Custom XPU businesses as key factors behind its raised target. The firm also pointed to Amazon’s revised 2026 capital expenditure forecast, now around $218 billion, and a new Anthropic-Amazon compute agreement for up to 5 gigawatts — both of which benefit Marvell’s Trainium business.

Marvell has flagged potential upside in its custom business for fiscal 2027, on top of its existing guidance of more than 20% growth. Supply constraints on 3-nanometer chips could cap some of that upside.

Susquehanna expects Marvell’s custom attach business could double revenue in fiscal 2027, driven by CXL and NIC programs. The firm values the stock at roughly 70 times calendar 2026 enterprise value to net operating profit after tax.

Optical Interconnects in Focus

HSBC’s Lee described Marvell as a “key beneficiary” as AI clusters expand into multi-rack AI factories — a shift that favors optical interconnects.

Marvell holds a majority market share in 800G and 1.6T Digital Signal Processors (DSPs), which attach 1:1 to optical transceivers. Transceiver module makers expect 800G shipments to double again in 2026 after doubling in 2025.

Marvell is engaged with AWS on follow-on Trainium generations and with Microsoft as a second hyperscale customer. The Microsoft engagement is not expected to contribute meaningfully until fiscal year 2028.

Revenue surged 42% over the last twelve months. Analysts project 33% revenue growth for fiscal 2027.

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