TLDR
- Marvell stock closed 1.9% higher Tuesday at $262.36.
- MRVL was down about 0.9% in Wednesday premarket trading.
- Seaport started coverage with a Buy rating and $270 price target.
- Data centers now generate about three-quarters of Marvell’s revenue.
- Google custom silicon and optical connectivity remain central to the company’s AI growth story.
Marvell (MRVL) stock was down about 0.9% in Wednesday premarket trading at roughly $260.14 after closing 1.9% higher Tuesday at $262.36. The stock has gained about 209% so far in 2026, making new analyst calls increasingly focused on how much growth is already priced in.
Marvell Technology, Inc., MRVL
Seaport Research Partners initiated coverage of Marvell with a Buy rating and $270 price target. Analyst Jay Goldberg’s target represents only about 3% upside from Tuesday’s close, but his thesis centers on continued growth in AI data-center infrastructure.
Goldberg highlighted Marvell’s optical interconnect and custom silicon businesses as two areas positioned to benefit from expanding AI infrastructure spending. Those businesses have become increasingly important as cloud companies build larger and faster data centers.
Data Centers Now Dominate Marvell Revenue
Marvell generated $6.1 billion from its data-center business in fiscal 2026, accounting for 74% of total revenue. That compares with just 40% of revenue in fiscal 2024.
The trend has continued into fiscal 2027. Second-quarter revenue rose 37% from a year earlier to $2.74 billion, helped by a 46% increase in data-center sales driven by AI demand.
Optical connectivity is one of the key pieces of that business. Marvell said its optical interconnect operation has grown at roughly a 50% compound annual rate over five years and now represents about half of data-center revenue.
Custom silicon has also grown quickly, reaching roughly 25% of data-center revenue. Marvell develops chips tailored for large cloud customers that increasingly want alternatives to standard off-the-shelf processors.
Google is central to that opportunity. Marvell disclosed in August that it had expanded its commercial agreement with Google across products connected to the TPU ecosystem, including AI inference accelerators, networking chips and memory-related products.
The agreement also included a warrant allowing Google to purchase up to about 59 million Marvell stocks at an exercise price of $206.58, subject to vesting conditions.
Wall Street Focuses on the 2030 Opportunity
Seaport is not alone in pointing to Marvell’s longer-term AI opportunity. Morgan Stanley recently raised its price target to $268 from $246 while keeping an Equal Weight rating.
Morgan Stanley expects Marvell’s October 6 investor day could outline a path toward more than $40 billion in fiscal 2030 revenue. The firm sees Google custom silicon and related scale-up products as major potential contributors, although that remains an analyst forecast rather than company guidance.
Marvell also expanded its manufacturing relationship with GlobalFoundries last week to increase capacity for optical connectivity products used in AI data centers. MRVL rose more than 6% during that session as investors reacted to the announcement.
The main investor risk is valuation after the stock’s roughly 209% year-to-date rally. Marvell also depends heavily on sustained hyperscaler spending, successful execution of custom chip programs and continued growth in AI networking demand.
For now, Seaport’s initiation adds another positive analyst view but offers limited upside from the current price. The latest market move has MRVL easing below $261 in Wednesday premarket trading after Tuesday’s 1.9% gain.
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