Marvell Technology: AI Momentum Strengthens, but the Stock Looks Fully Valued
RATING HOLD | PRIOR RATING STRONG BUY | BASE TARGET $198 | REFERENCE PRICE $206.48 |
Summary
Marvell delivered Q2 FY2027 revenue of $2.739 Bn, up 37% y/y and 13% q/q. Non-GAAP EPS reached $0.94, while data center revenue rose 46% y/y to $2.172 Bn.
The core thesis strengthened. Management raised FY2027 revenue guidance to about $12 Bn and FY2028 to about $18 Bn, with custom silicon, interconnect and switching all accelerating.
My base case uses $18.0 Bn FY2028 revenue, $6.46 non-GAAP EPS, a 35x multiple and a 10% discount rate. That produces a present target of about $198 versus $206.48 as of September 3, 2026 at 00:15 UTC.
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