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Marvell Technology anticipates revenues of $2.40 billion (+/- 5%) for the first quarter of fiscal 2027. The Zacks Consensus Estimate for MRVL’s fiscal first-quarter revenues is pegged at $2.40 billion, indicating year-over-year growth of 27%.
For the fiscal first quarter, the company expects non-GAAP earnings of 79 cents (+/- $0.05) per share. The Zacks Consensus Estimate for MRVL’s fiscal first-quarter earnings is pegged at 80 cents per share, reflecting a 29% increase year over year. The consensus mark for earnings has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
In the trailing four quarters, Marvell Technology’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 1%.
Our proven model does not conclusively predict an earnings beat for Marvell Technology this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
MRVL’s data center business is likely to have remained the primary growth driver in the first quarter of fiscal 2027, supported by accelerating AI infrastructure spending and strong bookings across its interconnect, switching and custom silicon portfolio. MRVL’s bookings are accelerating at a record pace and robust cloud CapEx trends are driving strong demand across the company’s entire data center portfolio.
Marvell Technology’s data center revenues are likely to have benefited from strong demand for optical interconnects, custom AI accelerators, Ethernet switching products and XPU-attach solutions. The company expects its data center revenues to grow approximately 10% sequentially in the first quarter of fiscal 2027. Management highlighted that demand remains robust for its 800-Gig products while 1.6T solutions are ramping rapidly with multiple Tier 1 customers.
MRVL’s custom business continues to be one of the strongest growth drivers. The company stated that custom revenues are expected to grow more than 20% year over year in fiscal 2027, driven by continued growth from its lead XPU program, next-generation AI accelerator ramps and several XPU-attach programs, including custom NIC and CXL products. These factors are likely to have reflected in the to-be-reported quarter. MRVL is also gaining from hyperscalers increasing their cadence of custom chip development and is engaged in multiple new design opportunities.
Marvell Technology’s interconnect portfolio is expected to have remained a major contributor to top-line growth. Management expects the interconnect business to grow more than 50% year over year in fiscal 2027, supported by strong demand for electro-optics products, coherent DSP solutions and active electrical cable products. The company is also benefiting from the growing adoption of AI scale-up and scale-out networking infrastructure.
MRVL’s communications and other end markets are also showing signs of recovery. The company delivered 26% year-over-year growth in communications and other end markets in the fourth quarter of fiscal 2026 and expects approximately 30% year-over-year growth in the first quarter of fiscal 2027.
However, Marvell Technology continues to face some challenges related to supply constraints tied to AI infrastructure demand. Management noted that advanced node wafer fabrication, advanced packaging and substrate supply remain tight across the industry. Despite these challenges, the company believes that it has secured sufficient supply to support its strong multiyear growth outlook.
MRVL Stock Price Performance & Valuation
Year to date, MRVL shares have gained 124.4%, outperforming the Zacks Electronics – Semiconductors industry’s growth of 43.4%.
MRVL YTD Performance Chart
Image Source: Zacks Investment Research
Now, let’s look at the value Marvell Technology offers investors at the current levels. MRVL stock trades at a discounted price with a forward 12-month price-to-sales (P/S) multiple of 14.20X compared with the industry’s 9.53X.
MRVL Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
MRVL Stock’s Investment Thesis
MRVL’s AI-driven custom silicon business is rapidly emerging as its most powerful growth engine. The company has secured more than 20 multi-generational XPU and XPU-attach socket wins, several already in production, with additional sockets adding multibillion-dollar lifetime revenue potential. Its design pipeline has expanded to more than 50 opportunities worth $75 billion, underscoring hyperscalers’ growing reliance on Marvell Technology’s differentiated capabilities.
Marvell Technology is solidifying its leadership in AI interconnect and optical technologies, a critical backbone of next-generation data centers. In fiscal 2026, the company began volume shipments of 200G per lane 1.6T PAM4 DSPs and ramped up its 51.2 Tbps switches while continuing strong demand for its 800G PAM DSPs. MRVL’s strategic portfolio realignment underscores its sharpened focus on high-growth AI and cloud markets.
However, macroeconomic and geopolitical uncertainties remain a meaningful overhang on Marvell Technology’s near-term performance. Global trade tensions, evolving U.S. chip export restrictions and tariffs create operational and demand-side risks, particularly given MRVL’s reliance on hyperscalers and global supply chains. The company faces stiff competition in the networking and custom silicon space from Broadcom (AVGO - Free Report) , Astera Labs (ALAB - Free Report) and Advanced Micro Devices (AMD - Free Report) .
Broadcom is a leader in the domain of custom silicon solutions for data centers. Broadcom’s advanced 3.5D XDSiP packaging platform is critical to ensure the performance and efficiency of custom AI XPUs. Advanced Micro Devices is another established player in the custom silicon solutions and AI accelerator market.
Advanced Micro Devices offers semi-custom SoCs and Instinct Accelerators to power data centers. Astera Labs’ Leo CXL smart memory controllers are built for memory expansion up to two terabytes and improve interoperability to accelerate AI performance and cloud computing.
Conclusion: Hold MRVL Stock Now
Marvell Technology’s strong AI-driven growth, fueled by rising data center demand, expanding custom silicon opportunities and deeper integration with NVIDIA, positions it well for sustained momentum. However, execution risks and competitive pressures remain key watchpoints. Considering these factors, we suggest that investors should retain MRVL stock at present.
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MRVL to Post Q1 Earnings: Time to Buy, Sell or Hold the Stock?
Key Takeaways
Marvell Technology, Inc. (MRVL - Free Report) is scheduled to report first-quarter fiscal 2027 results after market close on May 27, 2026.
Marvell Technology anticipates revenues of $2.40 billion (+/- 5%) for the first quarter of fiscal 2027. The Zacks Consensus Estimate for MRVL’s fiscal first-quarter revenues is pegged at $2.40 billion, indicating year-over-year growth of 27%.
For the fiscal first quarter, the company expects non-GAAP earnings of 79 cents (+/- $0.05) per share. The Zacks Consensus Estimate for MRVL’s fiscal first-quarter earnings is pegged at 80 cents per share, reflecting a 29% increase year over year. The consensus mark for earnings has remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
In the trailing four quarters, Marvell Technology’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 1%.
Marvell Technology, Inc. Price and EPS Surprise
Marvell Technology, Inc. price-eps-surprise | Marvell Technology, Inc. Quote
Earnings Whispers for MRVL Stock
Our proven model does not conclusively predict an earnings beat for Marvell Technology this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
Though Marvell Technology currently carries a Zacks Rank #3, it has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence Marvell’s Q1 Results
MRVL’s data center business is likely to have remained the primary growth driver in the first quarter of fiscal 2027, supported by accelerating AI infrastructure spending and strong bookings across its interconnect, switching and custom silicon portfolio. MRVL’s bookings are accelerating at a record pace and robust cloud CapEx trends are driving strong demand across the company’s entire data center portfolio.
Marvell Technology’s data center revenues are likely to have benefited from strong demand for optical interconnects, custom AI accelerators, Ethernet switching products and XPU-attach solutions. The company expects its data center revenues to grow approximately 10% sequentially in the first quarter of fiscal 2027. Management highlighted that demand remains robust for its 800-Gig products while 1.6T solutions are ramping rapidly with multiple Tier 1 customers.
MRVL’s custom business continues to be one of the strongest growth drivers. The company stated that custom revenues are expected to grow more than 20% year over year in fiscal 2027, driven by continued growth from its lead XPU program, next-generation AI accelerator ramps and several XPU-attach programs, including custom NIC and CXL products. These factors are likely to have reflected in the to-be-reported quarter. MRVL is also gaining from hyperscalers increasing their cadence of custom chip development and is engaged in multiple new design opportunities.
Marvell Technology’s interconnect portfolio is expected to have remained a major contributor to top-line growth. Management expects the interconnect business to grow more than 50% year over year in fiscal 2027, supported by strong demand for electro-optics products, coherent DSP solutions and active electrical cable products. The company is also benefiting from the growing adoption of AI scale-up and scale-out networking infrastructure.
MRVL’s communications and other end markets are also showing signs of recovery. The company delivered 26% year-over-year growth in communications and other end markets in the fourth quarter of fiscal 2026 and expects approximately 30% year-over-year growth in the first quarter of fiscal 2027.
However, Marvell Technology continues to face some challenges related to supply constraints tied to AI infrastructure demand. Management noted that advanced node wafer fabrication, advanced packaging and substrate supply remain tight across the industry. Despite these challenges, the company believes that it has secured sufficient supply to support its strong multiyear growth outlook.
MRVL Stock Price Performance & Valuation
Year to date, MRVL shares have gained 124.4%, outperforming the Zacks Electronics – Semiconductors industry’s growth of 43.4%.
MRVL YTD Performance Chart
Image Source: Zacks Investment Research
Now, let’s look at the value Marvell Technology offers investors at the current levels. MRVL stock trades at a discounted price with a forward 12-month price-to-sales (P/S) multiple of 14.20X compared with the industry’s 9.53X.
MRVL Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
MRVL Stock’s Investment Thesis
MRVL’s AI-driven custom silicon business is rapidly emerging as its most powerful growth engine. The company has secured more than 20 multi-generational XPU and XPU-attach socket wins, several already in production, with additional sockets adding multibillion-dollar lifetime revenue potential. Its design pipeline has expanded to more than 50 opportunities worth $75 billion, underscoring hyperscalers’ growing reliance on Marvell Technology’s differentiated capabilities.
Marvell Technology is solidifying its leadership in AI interconnect and optical technologies, a critical backbone of next-generation data centers. In fiscal 2026, the company began volume shipments of 200G per lane 1.6T PAM4 DSPs and ramped up its 51.2 Tbps switches while continuing strong demand for its 800G PAM DSPs. MRVL’s strategic portfolio realignment underscores its sharpened focus on high-growth AI and cloud markets.
However, macroeconomic and geopolitical uncertainties remain a meaningful overhang on Marvell Technology’s near-term performance. Global trade tensions, evolving U.S. chip export restrictions and tariffs create operational and demand-side risks, particularly given MRVL’s reliance on hyperscalers and global supply chains. The company faces stiff competition in the networking and custom silicon space from Broadcom (AVGO - Free Report) , Astera Labs (ALAB - Free Report) and Advanced Micro Devices (AMD - Free Report) .
Broadcom is a leader in the domain of custom silicon solutions for data centers. Broadcom’s advanced 3.5D XDSiP packaging platform is critical to ensure the performance and efficiency of custom AI XPUs. Advanced Micro Devices is another established player in the custom silicon solutions and AI accelerator market.
Advanced Micro Devices offers semi-custom SoCs and Instinct Accelerators to power data centers. Astera Labs’ Leo CXL smart memory controllers are built for memory expansion up to two terabytes and improve interoperability to accelerate AI performance and cloud computing.
Conclusion: Hold MRVL Stock Now
Marvell Technology’s strong AI-driven growth, fueled by rising data center demand, expanding custom silicon opportunities and deeper integration with NVIDIA, positions it well for sustained momentum. However, execution risks and competitive pressures remain key watchpoints. Considering these factors, we suggest that investors should retain MRVL stock at present.