Marvell Technology (MRVL) Stock Forecast & Price Target

Marvell Technology has demonstrated robust financial performance, guiding for a revenue of $2.2 billion in its January quarter, which reflects a sequential increase of 6% and a year-over-year growth of 21%. The positive growth outlook is supported by expectations of over 25% year-over-year revenue growth in its Data Center segment for CY26, alongside a strong performance in the Communications & Other segments, which is also projected to see sequential growth. Furthermore, Marvell's expanding custom business, driven by recent design wins and emerging partnerships, positions the company for significant revenue contributions moving into FY28 and beyond.

The outlook for Marvell Technology remains negative due to a projected decline in gross margin by approximately 70 basis points, despite guidance for earnings per share of $0.79 aligning with consensus expectations. Additionally, the growth in Carrier and Networking revenues at 25% quarter-over-quarter was below management’s prior expectations, signaling potential ongoing cyclical weakness in key market segments such as Storage and Networking. Furthermore, anticipated falling gross margins in fiscal years 2027 and 2028, alongside limited reductions in share count, point to increased challenges as Custom Silicon gains a larger share of the revenue mix, which could further pressure profitability.