Goldman Sachs raised its Marvell Technology price target to $195 from $180, maintaining a Neutral rating. The stock trades above the new target at $217 after a 173 percent gain over the past year. The firm expects datacenter strength to drive further revenue outlook raises.
Goldman Sachs raised its Marvell Technology price target to $195 from $180, maintaining a Neutral rating on the AI chipmaker.
Analyst James Schneider said the firm expects investors to focus on potential upside in Marvell's datacenter business driven by higher hyperscaler capital expenditures, strong optical networking demand, sustained momentum at existing ASIC customers, and the ramp of a new custom silicon customer.
The stock trades at $217, already above the new target, after rallying nearly 40 percent over the past two weeks and gaining 173 percent over the past year. Marvell posted 34 percent revenue growth in the last twelve months, with analysts forecasting 40 percent growth for fiscal 2027. The company's market capitalization stands at roughly $194.8 billion.
Expectations are elevated after constructive AI infrastructure data points intra-quarter, and Goldman believes Marvell remains well positioned to benefit from growing optics demand and custom XPU deployments. The firm expects management to raise its calendar year 2026 and 2027 revenue outlook, led by ongoing datacenter strength.
Marvell reported Q1 revenue of $2.418 billion, up 27.6 percent, with the Data Center segment contributing $1.833 billion, or 76 percent of the mix. Q2 guidance calls for revenue of $2.70 billion at the midpoint, implying roughly 35 percent growth, and non-GAAP EPS of $0.93. CEO Matt Murphy said the company is "significantly raising" its revenue outlook for both fiscal 2027 and fiscal 2028 on exceptional AI-related bookings.
The Goldman move comes as other banks adjust their views. UBS raised its price target to $340 from $230, maintaining a Buy rating and highlighting the expanding opportunity in CXL technology. Erste Group downgraded Marvell to Hold from Buy, citing valuation concerns. Among 29 analysts surveyed by TipRanks, the average 12-month target stands at $271.33.
Marvell and Astera Labs have also benefited from Amazon's announcement of $25 billion in annual sales driven by its custom AI chips, a milestone for Amazon Web Services. The company's product roadmap spans 800G and 1.6T scale-out optics, 51.2T Ethernet switches, and custom XPU silicon, extended by the acquisitions of Celestial AI and XConn Technologies. Global chip industry revenue reached $796 billion in 2025, a 26 percent year-over-year jump driven by data center and AI demand.
The Neutral rating with a target below the current share price points to limited near-term upside after the stock's parabolic run. Investors will watch Marvell's earnings report on August 27 for updated segment margins and any further raise to the fiscal 2027 and 2028 outlook.
This article is for informational purposes only and does not constitute investment advice.
