Marvell Technology is set to release its quarterly results after U.S. markets close on August 27, with analysts projecting earnings per share of $0.93 on revenue of $2.71 billion, reflecting a 34.1% year-over-year increase.
The company’s stock last traded at $243.78, trading at a forward price-to-earnings multiple of 57.5x. Data center revenue now exceeds 80% of total sales, with the AI data center segment generating more than $2 billion per quarter. Chief Executive Officer Matt Murphy has highlighted a cumulative XPU market opportunity approaching $700 billion through 2030, alongside upwardly revised data center capital expenditure forecasts totaling $12 trillion.
Estimate revisions have been positive, with EPS estimates rising 3.27% over the past 90 days and 8.92% over the past year. Revenue estimates have similarly increased by 3.80% and 15.85% over the same periods. Historical quarterly stock reactions have been volatile, ranging from gains of 14.7% to declines of 15.9% in the last four quarters.
Nvidia’s recent earnings have underscored the rapid expansion of AI infrastructure demand, with its stock trading at $210.00 and a forward P/E of 23.5x. Revenue growth for Nvidia reached 70.7% year-over-year, though its stock has declined in the days following each of its last four earnings beats. Analysts at Morgan Stanley raised Marvell’s price target to $224, citing expectations of 16% sequential growth in the data center segment for the June quarter. HSBC set a higher target of $300, while Barclays maintained a $150 target.
Marvell’s valuation remains elevated, with InvestingPro’s fair value estimate at $178.47, implying a 26.8% overvaluation relative to its current share price. The company’s beta stands at 2.25, indicating higher volatility compared to the broader market.
