Marvell Target Raised to $110 by Bank of America and $135 by B. Riley
Bank of America upgraded Marvell to buy, raising its price target to $110 after reporting fiscal-2026 revenue of $8.195 billion (+42 %) and Q4 revenue of $2.219 billion (+22 %). B. Riley also raised its target to $135, citing strong momentum in data-center custom compute and XPU programs.
1. Analyst Upgrades and Price Targets
Bank of America flipped Marvell’s rating from neutral to buy and increased its price target from $90 to $110, highlighting strength in AI optical connectivity and visibility on Microsoft and Amazon custom chip programs. B. Riley maintained its buy rating and lifted its target from $130 to $135, pointing to momentum in data-center custom compute, optics and XPU attach programs.
2. Fiscal Q4 and Full-Year 2026 Results
Marvell posted fiscal Q4 revenue of $2.219 billion, up 22% year-over-year and above the midpoint of guidance, while full-year revenue reached a record $8.195 billion, up 42%. Non-GAAP EPS for the year rose 81% to $2.84, with Q4 non-GAAP EPS at $0.80, beating consensus by a cent.
3. Data-Center and Custom Silicon Growth
Data-center revenue hit a quarterly record of $1.65 billion, accounting for 74% of total sales. Marvell’s custom silicon business scaled from near zero to $1.5 billion in fiscal 2026 and is expected to grow more than 20% in fiscal 2027 and double again by fiscal 2028.
4. Forward Guidance and Catalysts
Marvell provided Q1 fiscal 2027 revenue guidance of $2.4 billion, well above prior estimates. Key catalysts include expanding AI optical connectivity, the Amazon XPU transition and an upcoming Microsoft chip program that underpin upgraded analyst confidence.