Marvell Technology Inc. (NASDAQ:MRVL) shares ticked higher in Wednesday's premarket, with the stock up 0.46% to $226.45. The move came as semiconductor stocks held steady, with Nasdaq futures up 0.05% and S&P 500 futures little changed.
There wasn't any fresh company-specific news this morning, but Marvell is still riding the buzz from CEO Matt Murphy's Tuesday appearance on CNBC's "Mad Money" with Jim Cramer. Murphy laid out a dramatically brighter revenue picture, deeper ties with hyperscalers, and accelerating data center demand. It's the kind of update that makes investors sit up and take notice.
Data Centers Power Marvell's Revenue Surge
Murphy told Cramer that Marvell's growth outlook has improved significantly since December. Back then, the company was expecting about $10 billion in revenue this year and $13.5 billion in 2027. Now? Marvell expects about $12 billion this year and $18 billion next year. That lifts the combined two-year revenue outlook to $30 billion from $23.5 billion. That's a big jump in a short time.
Data centers are the engine behind much of that acceleration. Marvell generated roughly $2 billion in data center revenue in 2023. Murphy now expects more than $15 billion of the company's projected $18 billion in revenue next year to come from data centers.
"So basically, we've come in a full year and taken the company from $2 billion and change in data center revenue in 2023 to $15-$16 billion next year," Murphy said.
That's a staggering growth trajectory, and it's not just about one big customer. Murphy emphasized that Marvell works with all four major U.S. hyperscalers on custom silicon. The company also has a significant position in optical connectivity, which is becoming increasingly important as data centers connect larger clusters of computing power.
AI Partnerships Expand
Murphy also highlighted Marvell's partnership with NVIDIA and its recent warrant agreement with Alphabet Inc. (NASDAQ:GOOGL) unit Google. Under that deal, Marvell could issue warrants representing about 6.5% of the company if cumulative revenue reaches $120 billion. It's a deal that aligns incentives and shows how deep these relationships go.
"What it really says at a high level is we have customers that want to partner with Marvell. And they want to be part of our success," Murphy said.
Murphy described Marvell as "the Switzerland of this entire market" because it can work across different GPU and XPU platforms. That neutrality is a strategic advantage in a world where AI chip competition is fierce.
"We are basically the Switzerland of this entire market right now. We work with everybody," he said.
Cramer also brought up NVIDIA CEO Jensen Huang's suggestion that Marvell could eventually become a trillion-dollar company. Murphy called that valuation aspirational and emphasized execution instead.
"We're just focused on driving the business, right, creating the value for the shareholders along the way," Murphy said.
The next major fundamental checkpoint comes Oct. 6, when Marvell plans to present investors with a new four- to five-year roadmap at its investor day. Against that improving growth backdrop, the stock's technical setup remains constructive.
Technical Analysis
Marvell remains in a multi-month uptrend. The stock trades 48.4% above its 200-day simple moving average of $152.50. That's a strong sign of long-term momentum.
Shares are also above the 20-day SMA of $225.42, the 50-day SMA of $219.84, and the 100-day SMA of $216.52. The 20-day SMA remains above the 50-day SMA, suggesting the recent pullback has not broken the broader trend. The relative strength index stands at 51.28, which signals neutral momentum and suggests the stock is neither overbought nor oversold.
Key resistance sits at $254.50. A move above this level could put previous highs back in focus. Marvell also remains in a long-term bullish setup after its 50-day SMA crossed above its 200-day SMA in October 2025.
Analyst Outlook
Marvell trades at a price-to-earnings ratio of about 74.6, reflecting a premium valuation. That's not cheap, but investors are paying for growth. The stock carries a Buy consensus rating with an average price forecast of $296.35.
Recent analyst actions show a mix of optimism and caution. Craig-Hallum maintained a Buy rating and raised its price forecast to $300 on Aug. 28. B. Riley Securities maintained Buy but lowered its forecast to $315. TD Cowen maintained Hold and raised its forecast to $245.
MarketDash Edge Rankings
Marvell scores strongly on MarketDash Edge for Momentum at 98.64 and Growth at 99.56. However, its Value score is just 2.18. That combination points to strong growth and momentum alongside a rich valuation. That premium could make the stock more vulnerable if growth expectations weaken.
Top ETF Exposure
Marvell has a 4.53% weighting in the Invesco PHLX Semiconductor ETF (NASDAQ:SOXQ), a 5.69% weighting in the State Street SPDR NYSE Technology ETF (NYSE:XNTK), and a 6.92% weighting in the First Trust Nasdaq Semiconductor ETF (NASDAQ:FTXL).
As a result, large inflows or outflows from these ETFs can contribute to buying or selling pressure in Marvell shares. It's something to keep in mind if you're watching the stock's daily moves.
For now, Marvell's story is one of rapid AI-driven growth, a neutral positioning that lets it work with everyone, and a technical setup that remains bullish. The investor day in October could be the next catalyst to watch.
