Wall Street expects Marvell to report adjusted earnings of $0.93 per share on revenue of $2.7 billion for the second quarter.
- Susquehanna raised its price target on Marvell to $265, citing strength in AI networking.
- Rosenblatt raised its target to $300, citing growth in optical interconnects.
- Analysts are watching AI networking and custom silicon for signs of further growth.
Marvell Technology (MRVL) shares rose in morning trade after the stock received another set of price target hikes ahead of its second-quarter earnings later this week.
In a note to investors cited by TheFly, Susquehanna raised its price target on Marvell to $265 from $230 and kept a ‘Positive’ rating on the shares. Meanwhile, Rosenblatt analyst Sajal Dogra raised the price target on Marvell to $300 from $240 and kept a ‘Buy’ rating.
MRVL stock rose over 6% in morning trade. On Stocktwits, retail sentiment around the Nvidia (NVDA)-backed company trended in ‘extremely bullish’ territory over the past day, accompanied by ‘high’ levels of chatter.
Trading at around $240 at the time of writing, Susquehanna’s price target implies a potential upside of around 10% for MRVL stock, while Rosenblatt’s price target of $300 implies an upside of 25%.
Why Is Wall Street Bullish On Marvell?
Susquehanna expects Marvell to exceed Wall Street’s expectations for the quarter, with AI networking emerging as a key driver. The firm also expects Marvell to raise its fiscal 2027 outlook for Inphi, the optical connectivity business it acquired in 2021.
Rosenblatt also said it expects Marvell to deliver “another beat-and-raise” quarter, with optical interconnect revenue projected to grow 25% sequentially. The firm does not expect Marvell to change its previously outlined long-term interconnect framework.
Marvell Heads Into Earnings With High AI Expectations
Wall Street expects Marvell to report adjusted earnings of $0.93 per share on revenue of $2.7 billion for the second quarter, according to Koyfin data. That would represent revenue growth of more than 35% from a year earlier. The earnings report is scheduled for Thursday, after the market closes.
Several other analysts have also raised their targets ahead of the print, with price targets now extending well above $300. Wells Fargo, Oppenheimer, Citi and Jefferies have all cited stronger AI demand, hyperscaler spending or the company’s custom silicon pipeline in recent target increases.
Retail traders on Stocktwits also expect Marvell’s earnings to be bullish for the stock, with some anticipating a run-up to $300.
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MRVL stock has gained roughly 236% over the past 12 months and more than 180% this year. The company recently expanded its partnership with Google (GOOG, GOOGL) to develop custom chips and related components. Google also received a warrant to purchase up to 58.97 million Marvell shares at $206.58 each, representing roughly 7% of the company, if purchase targets are met.
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