Marvell Technology Inc. (MRVL) shares climbed Wednesday after the chipmaker delivered solid third-quarter earnings that showed its AI and data center business is hitting its stride. More importantly, management laid out a growth roadmap that has Wall Street genuinely excited about what's coming next.
Four major analysts raised their price targets on the stock, with forecasts now ranging from $120 to $130. The enthusiasm stems from two big developments: confirmed customer orders that lock in near-term revenue, and a strategic acquisition that could reshape Marvell's position in next-generation chip technology.
Analysts See Clear Path to Growth
Rosenblatt analyst Kevin Cassidy bumped his price target from $95 to $120 while maintaining a Buy rating. He pointed to management's outlook through fiscal 2028 as the real story here, particularly the projection that data center revenue will surge more than 25% next year. What really caught his attention: Marvell has secured full purchase orders for its next-generation custom chip program, which means no awkward revenue gaps to worry about. Cassidy also highlighted the Celestial AI acquisition, predicting the optical technology will start generating meaningful revenue by late fiscal 2028.
Benchmark analyst Cody Acree was even more bullish, raising his target from $95 to $130 while keeping a Buy rating. He told investors to get in before the growth inflection hits. The numbers backing his confidence are substantial: 40% data center growth and custom chip sales doubling by fiscal 2028. Acree emphasized Marvell's relationship with Amazon.com Inc (AMZN), noting that secured orders for next-generation programs eliminate near-term uncertainty. He sees the Celestial AI deal positioning Marvell to dominate the emerging optical interconnect market. His projections show fiscal 2027 revenue hitting $9.93 billion with adjusted EPS of $3.59, and fiscal 2028 revenue potentially reaching $12.35 billion—well above what the consensus expects.
JPMorgan analyst Harlan Sur maintained an Overweight rating and raised his price target from $120 to $130. He argued that Marvell's data center outlook matters far more than the quarterly numbers, pointing to a new baseline of over 25% growth for fiscal 2027. The analyst stressed that Marvell holds firm purchase orders from Amazon Web Services covering the entire fiscal 2027 Trainium 3 ramp, which effectively locks in revenue. Perhaps most intriguingly, Sur suggested the Celestial AI acquisition virtually confirms Marvell won the design for Amazon's next-generation 2nm Trainium 4 chip, given the specific engineering integration required. With custom silicon revenue potentially doubling in fiscal 2028, he sees a solid setup driven by accelerating AI budgets and confirmed design wins.
Needham analyst N. Quinn Bolton also raised his price target from $95 to $120 with a Buy rating. He highlighted strengthening momentum in Marvell's data center segment as custom silicon and interconnect solutions gain traction. Bolton emphasized the visibility into growth, supported by purchase orders from a lead customer that cover the entire fiscal 2027 forecast. He views Celestial AI as a key long-term catalyst, expecting it to contribute meaningful revenue starting in the second half of fiscal 2028 and reach a $1 billion run rate by fiscal 2029.
The Amazon Connection
The analysts keep circling back to Amazon, and for good reason. Having locked-in orders from one of the world's largest cloud providers removes a lot of guesswork from the revenue forecast. When a company can tell investors that a major customer has already committed to buying specific volumes of next-generation chips, it changes the risk profile significantly.
The Celestial AI acquisition adds another layer to this story. The technology focuses on optical interconnects, which could become critical as AI workloads demand faster data movement between chips. If analysts are right that this acquisition signals a deeper partnership with Amazon on future chip designs, it suggests Marvell is becoming more deeply embedded in the infrastructure powering AI development.
Marvell shares were up 6.38% at $98.81 at the time of publication Wednesday.
