We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Can Marvell Technology Sustain Its Strong AI Networking Expansion?
Read MoreHide Full Article
Key Takeaways
MRVL expects interconnect revenue growth above 70% year over year in fiscal 2027.
Marvell Technology sees TIAs and drivers topping a $1B annualized run rate in the coming quarters.
Marvell Technology expects scale-up optics and DCI module revenue ramps in fiscal 2028.
Marvell Technology’s (MRVL - Free Report) networking business remains a key beneficiary of rising AI cluster size and complexity. Marvell Technology now expects its interconnect business to grow more than 70% year over year in fiscal 2027, supported by scale-out PAM ramp-ups and growing contributions from scale-up and scale-across networking.
Within optics, the company expects TIAs and drivers to exceed a $1 billion annualized run rate in the next few quarters and sees a path to about $1 billion annualized DCI module revenues during fiscal 2028. The company also expects scale-up optics to ramp up in fiscal 2028, reflecting broader adoption across engagements.
Marvell Technology has been transforming itself into a key contributor to the connectivity hardware solutions for AI infrastructure and data centers. The company had launched the Golden Cable initiative to accelerate and expand the Active Electrical Cable (AEC) ecosystem for faster deployment of AI infrastructure by cloud and hyperscaler customers.
The AEC technology supports next-generation 1.6 T connectivity for superfast networks. Marvell Technology’s partners use this technology to validate cable architectures, advanced firmware, calibration data, and get support for integration and interoperability through the Golden Cable initiative.
MRVL is also gaining from the adoption of scale-up switches that connect AI accelerators within and across racks, requiring multi-terabit bandwidth and ultra-low latency. These switches will support both open standard Ethernet and UALink fabrics, leveraging Marvell Technology’s low-latency SerDes and Ethernet switch IP.
How Competitors Fare Against MRVL Stock
The company faces stiff competition in the networking and custom silicon space from Broadcom (AVGO - 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.
MRVL's Price Performance, Valuation and Estimates
Shares of Marvell Technology have gained 228.4% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 63.3%.
MRVL YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 18.01X, lower than the industry’s average of 10.64X.
MRVL Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MRVL’s fiscal 2027 and 2028 earnings implies year-over-year growth of 42.3% and 52.9%, respectively. The estimates for fiscal 2027 and 2028 have been revised upward in the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Can Marvell Technology Sustain Its Strong AI Networking Expansion?
Key Takeaways
Marvell Technology’s (MRVL - Free Report) networking business remains a key beneficiary of rising AI cluster size and complexity. Marvell Technology now expects its interconnect business to grow more than 70% year over year in fiscal 2027, supported by scale-out PAM ramp-ups and growing contributions from scale-up and scale-across networking.
Within optics, the company expects TIAs and drivers to exceed a $1 billion annualized run rate in the next few quarters and sees a path to about $1 billion annualized DCI module revenues during fiscal 2028. The company also expects scale-up optics to ramp up in fiscal 2028, reflecting broader adoption across engagements.
Marvell Technology has been transforming itself into a key contributor to the connectivity hardware solutions for AI infrastructure and data centers. The company had launched the Golden Cable initiative to accelerate and expand the Active Electrical Cable (AEC) ecosystem for faster deployment of AI infrastructure by cloud and hyperscaler customers.
The AEC technology supports next-generation 1.6 T connectivity for superfast networks. Marvell Technology’s partners use this technology to validate cable architectures, advanced firmware, calibration data, and get support for integration and interoperability through the Golden Cable initiative.
MRVL is also gaining from the adoption of scale-up switches that connect AI accelerators within and across racks, requiring multi-terabit bandwidth and ultra-low latency. These switches will support both open standard Ethernet and UALink fabrics, leveraging Marvell Technology’s low-latency SerDes and Ethernet switch IP.
How Competitors Fare Against MRVL Stock
The company faces stiff competition in the networking and custom silicon space from Broadcom (AVGO - 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.
MRVL's Price Performance, Valuation and Estimates
Shares of Marvell Technology have gained 228.4% year to date compared with the Zacks Electronics - Semiconductors industry’s growth of 63.3%.
MRVL YTD Performance Chart
Image Source: Zacks Investment Research
From a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 18.01X, lower than the industry’s average of 10.64X.
MRVL Forward 12-Month (P/S) Valuation Chart
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MRVL’s fiscal 2027 and 2028 earnings implies year-over-year growth of 42.3% and 52.9%, respectively. The estimates for fiscal 2027 and 2028 have been revised upward in the past 30 days.
Image Source: Zacks Investment Research
Marvell Technology currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.