Marvell Raises Q1 Revenue 28% to $2.42B; HSBC Lifts Target to $300
MRVL•Marvell reported Q1 fiscal 2027 revenue of $2.42 billion, up 28%, driven by a record $1.83 billion in data center sales, and raised Q2 guidance to $2.70 billion, topping forecasts. HSBC upgraded the stock to Buy and boosted its 12-month target to $300, citing optical interconnect and CXL growth.
1. Q1 Fiscal 2027 Earnings Beat Expectations
Marvell achieved record revenue of $2.42 billion in Q1 fiscal 2027, a 28% year-over-year increase, with the data center segment generating $1.83 billion, representing 76% of total sales. GAAP net income dipped to $34.5 million due to acquisition costs, while non-GAAP EPS stood at $0.80.
2. Upgraded Full-Year Outlook and Q2 Guidance
The company raised its Q2 revenue forecast to $2.70 billion (+/- 5%) and non-GAAP EPS to $0.93 (+/- $0.05), exceeding consensus. It also boosted full-year revenue projections for fiscal 2027 and 2028, citing strong AI, optical networking, and CXL demand.
3. HSBC Raises 12-Month Price Target to $300
HSBC moved Marvell to Buy, lifting its 12-month price objective to $300 from $85, reflecting increased fiscal 2027 and 2028 earnings estimates of 21% and 61%. The upgrade is based on a 42× forward P/E on fiscal 2028 profit and robust optical interconnect prospects.
