This article first appeared on GuruFocus.
Marvell Technology (NASDAQ:MRVL) drew another bullish analyst call ahead of earnings, with Rosenblatt Securities raising its price target to $300 from $240 while keeping a Buy rating. The upgrade reflects growing confidence that Marvell’s custom AI silicon and optical interconnect businesses can support substantially higher earnings power over the next several years, giving investors another reason to focus on Thursday’s fiscal second-quarter report.
Marvell supplies data-infrastructure semiconductors used across cloud, networking, storage and AI systems. Increasingly, its growth story centers on custom AI accelerators, optical connectivity and networking products sold to hyperscalers including Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN) and Google (NASDAQ:GOOG).
Rosenblatt analyst Sajal Dogra expects strong second-quarter results, helped by more than 25% sequential growth in optical interconnects. The firm also sees major custom-silicon ramps in fiscal 2028 and 2029 tied to Microsoft Maia, AWS Trainium and Marvell’s expanded Google relationship.
That Google deal has become particularly important. Marvell disclosed this month that Google could purchase up to $120 billion of custom products through fiscal 2033, with warrant vesting tied largely to cumulative purchases. The expanded partnership spans AI inference accelerators, storage controllers, networking chips and other products around Google’s TPU ecosystem.
Rosenblatt estimates Marvell could generate roughly $10.50 in fiscal 2029 earnings, applying a 29-times multiple to reach its new $300 target. The firm argues rising chip-development costs increasingly favor scaled suppliers like Marvell because intellectual property can be reused across customers and platforms.
Investor Takeaway
The immediate catalyst is Marvell’s fiscal Q2 earnings on Thursday, Aug. 27, followed by its Investor Day on Oct. 6. Investors should watch optical-interconnect growth, custom-silicon revenue visibility and any change to management’s fiscal 2028 and 2029 framework.
Rosenblatt does not expect those longer-term targets to be reset this week, making October potentially more important for the stock’s valuation. Strong Q2 execution and greater visibility into Microsoft, AWS and Google ramps would support the $300 thesis. Slower hyperscaler deployments, weaker margins or delays in custom-chip programs would make Rosenblatt’s 29-times fiscal 2029 earnings multiple harder to justify.
