Rosenblatt Securities initiated coverage of Marvell Technology with a Buy rating and designated the chipmaker as a core long idea, lifting its price target to $300 from $240.
Analyst Sajal Dogra framed the valuation on a 29x multiple of projected FY29 earnings of $10.50 per share, reflecting confidence in Marvell’s positioning in AI-driven silicon and custom chip solutions. The firm’s outlook hinges on accelerating growth in optical interconnects, with sequential revenue expected to rise more than 25% in the current quarter.
Marvell is scheduled to report second-quarter results after market close on Thursday, with investors anticipating a beat-and-raise performance supported by recent strength in peers such as Lumentum, Coherent, and MACOM. Dogra highlighted large custom-silicon ramps planned for fiscal 2028 and 2029, including deployments tied to Microsoft’s Maia AI accelerator, Amazon’s Trainium chips, and an expanded partnership with Google.
Management is not expected to update its FY28 and FY29 interconnect and custom silicon revenue framework until the company’s Investor Day in early October. The semiconductor industry’s rising development costs, now exceeding $500 million per chip design compared with roughly $50 million a decade ago, underscore the competitive advantage held by integrated players like Marvell.
