Rosenblatt Securities initiated coverage of Marvell Technology on Thursday with a Buy rating and designated the chipmaker a core long idea, lifting its price target to $300 from $240.
The upgrade reflects expectations for accelerating revenue growth in optical interconnects and expanding custom-silicon deployments, particularly in fiscal years 2028 and 2029. Analyst Sajal Dogra projects approximately $10.50 in earnings per share for fiscal 2029, applying a 29x forward earnings multiple to justify the new valuation.
Marvell is scheduled to report second-quarter results after the market close on Thursday. Dogra anticipates a beat-and-raise scenario, driven by sequential growth in optical interconnects exceeding 25%, supported by recent performance from peers including Lumentum, Coherent, and MACOM. The firm’s focus is shifting toward large custom-silicon ramps, including Microsoft’s Maia accelerator, Amazon’s Trainium chips, and an expanded partnership with Google.
Management is not expected to revise its fiscal 2028 and 2029 interconnect and custom-silicon revenue framework before the company’s Investor Day in early October. The analyst also highlighted structural shifts in the semiconductor industry, noting that chip development costs have surged to over $500 million per design from roughly $50 million a decade ago, contributing to ongoing consolidation among digital semiconductor suppliers.
