Marvell Technology Inc. is scheduled to release its fiscal second-quarter earnings after U.S. markets close on Thursday, with analysts projecting a 39% year-over-year increase in earnings per share and a 35% rise in revenue.
Consensus estimates compiled by the company indicate earnings of $0.93 per share on revenue of $2.71 billion for the quarter ended July 31. This compares with $0.80 per share on $2.42 billion in revenue in the prior period, reflecting sequential growth of approximately 16% in earnings and 12% in revenue. The stock currently trades at 58 times forward earnings, according to data compiled by the company.
Analysts covering the chipmaker remain overwhelmingly bullish, with 38 of 44 covering firms assigning buy ratings. The consensus price target stands at $269.28, implying roughly 10% upside from the stock's Wednesday close of $245.11. Recent adjustments include a $310 target from Wells Fargo and a $300 target from Rosenblatt.
A key catalyst for Marvell's growth trajectory is its expanded partnership with Google, which involves the development of custom silicon for AI inference accelerators, storage controllers, and network interface controllers. The deal includes a warrant structure spanning 240 tranches tied to cumulative revenue, with potential payouts reaching $120 billion through fiscal 2033 if fully realized. Google joins Amazon and Microsoft as a major hyperscaler customer for Marvell's custom accelerator portfolio.
Marvell has set ambitious revenue targets for its custom silicon business, projecting approximately $4 billion in fiscal 2028 and more than $10 billion in fiscal 2029. The company also benefits from strong demand in the AI optical transceiver market, which is projected to expand 57% this year to $26 billion, driven by data center connectivity requirements.
