Marvell Expects $2.2 Billion Q4 Revenue, Completes XConn and Celestial AI Acquisitions
RBC Capital Markets projects Marvell’s fiscal Q4 revenue at $2.2 billion and non-GAAP EPS at $0.79, anticipating a slight beat when results arrive March 5. Marvell finalized acquisitions of XConn Technologies and Celestial AI, targeting $50 million in annualized XConn revenue by Q4 FY2027 and bolstering its AI interconnect portfolio.
1. Q4 Earnings Outlook
RBC Capital Markets projects Marvell to post fiscal Q4 revenue of $2.2 billion with non-GAAP earnings of $0.79 per share, anticipating a slight beat when results are released March 5. Company guidance also indicates GAAP gross margins between 51.1% and 52.1% and GAAP EPS near $0.36.
2. Acquisitions Expand AI Portfolio
Marvell has finalized the acquisition of XConn Technologies, adding PCIe and CXL switching silicon and targeting $50 million in annualized XConn revenue by Q4 FY2027. The Celestial AI purchase brings Photonic Fabric optical interconnect technology, broadening Marvell’s addressable market in scale-up AI and cloud data center connectivity.
3. Analyst Price Target and Risks
RBC’s Srini Pajjuri reiterated an outperform rating and set a $105 price target based on a 22× multiple of 2027 EPS and 20%–30% growth assumptions. Key risks include hyperscaler capital expenditure slowdowns, stronger ASIC competition, and potential displacement of DSPs by linear pluggable optics.