Marvell Technology Group Ltd. (NASDAQ:MRVL) stock drew fresh analyst commentary on Friday after the company raised its fiscal 2027 and fiscal 2028 revenue outlook.
Rosenblatt analysts reiterated a Buy rating and $300 price forecast, based on 28 times their fiscal 2029 earnings-per-share framework. Needham raised its price forecast to $300 from $270, maintaining a Buy rating, based on approximately 30 times their calendar 2028 non-GAAP EPS estimate of $10.25.
Marvell’s stock is falling on Friday despite record results because investors were expecting even more after its huge 220%+ rally over the past year.
The main concern is that rapid growth in lower-margin custom AI chips is temporarily pressuring gross margins, while major new AI deals such as Google’s are expected to contribute more meaningfully only in later years.
In short, the AI business is getting stronger, but investors are now demanding faster profitable growth and believe much of the good news is already priced into the stock.
Revenue Outlook Raised
Management raised its fiscal year 2027 and fiscal year 2028 revenue outlook by $500 million and $1.5 billion, to approximately $12 billion and $18 billion, respectively. Needham noted management guided fiscal year 2028 revenue growth to more than 50% year-over-year, up from a prior outlook of 45%.
Data Center Segment Drives Growth
Rosenblatt attributed the increase to scale-out interconnect, switching and a custom silicon ramp in the second half of fiscal year 2027.
Needham said data center revenue is now expected to grow more than 60% year-over-year in fiscal year 2028.
Google Agreement Details
Needham noted that if all milestones under Marvell’s previously announced commercial agreement with Google are achieved, it could represent up to $120 billion of revenue over the next six years.
Analyst Day Set for October
Rosenblatt pointed to Marvell’s Analyst Day in early October, when management is expected to provide additional detail on long-term revenue and margin targets.
MRVL Price Action: Marvell Technology shares were down 9.96% to $217.41 at the time of publication on Friday, according to Benzinga Pro data.
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