Susquehanna raised its price target on Marvell Technology to $265 from $230 on Monday, maintaining a Positive rating as demand for AI networking solutions accelerates. The upgrade follows robust projections for Marvell’s custom AI product business, which is expected to more than double to $4 billion in fiscal 2028 and reach approximately $10 billion by fiscal 2029.
The firm’s price target revision aligns with a broader shift in analyst sentiment. Rosenblatt Securities raised its target to $300, while UBS increased its forecast to $310. BMO Capital initiated coverage with a $250 target and an Outperform rating, and Oppenheimer reiterated its $250 target with a Superior rating. Benchmark maintained its $275 target and Buy rating. Marvell’s market valuation stands at $201 billion, with shares up 215% over the past year.
The upgrades coincide with heightened demand for AI infrastructure components, including storage controllers, network interface cards, and AI inference accelerators. Marvell’s commercial agreement with Google covers approximately $120 billion in custom product deals through 2033, spanning storage, networking, and AI acceleration technologies tied to Google’s TPU ecosystem.
Amazon Web Services (AWS) has also signaled strong AI infrastructure investment, raising its 2026 capital expenditure forecast to $220 billion from roughly $200 billion. The adjustment reflects higher memory costs and sustained long-term demand for AI computing, including Trainium-based contracts. Analysts note that Marvell’s Inphi optical interconnect business is poised to benefit from this trend, with expectations that the company may raise its fiscal 2027 target for the segment.
Marvell is scheduled to report second-quarter fiscal 2027 results on Thursday, with Benchmark forecasting revenue of $2.709 billion and earnings per share of $0.93. The company’s custom AI product business remains a key growth driver, with projections indicating a trajectory toward $10 billion in annual revenue by fiscal 2029.
Analysts at Coherent and Lumentum, which supply optical components and transceivers, have reported robust demand indicators, further supporting expectations for Marvell’s Inphi business expansion. The broader AI networking ecosystem continues to expand, with multiple firms adjusting price targets in response to evolving market dynamics.
