Marvell Technology experienced a significant surge in its stock price, rising 18% on Friday following the release of its quarterly earnings report and strong forward guidance. The company reported adjusted earnings of 80 cents per share for the quarter, surpassing the analyst consensus of 79 cents per share as polled by LSEG. Fourth-quarter revenue reached $2.2 billion, exceeding the forecasted $2.1 billion [1].
CEO Matt Murphy emphasized the company's confidence in continued robust demand for artificial intelligence, stating, 'Look at our results that we're guiding. Look at our outlook for this year. Look at our outlook for next year. Do you see me blinking? You don't.' Murphy further noted that Marvell expects year-over-year revenue growth to accelerate in each quarter of 2027 [1]. For the first quarter of 2027, Marvell projects revenue of $2.4 billion, +/-5%, which is above Wall Street's expectation of $2.27 billion [1].
Marvell's data center revenue for fiscal 2026 surpassed $6 billion, marking a 46% increase from the previous year. The company recently completed acquisitions of Celestial AI and XConn Technologies, which are anticipated to contribute $250 million in aggregate revenue for fiscal 2028. Marvell has forecasted $14.48 billion in revenue and earnings of $5.35 per share for fiscal 2028 [1].
Analyst sentiment was largely positive, with J.P. Morgan analyst Harlan Sur expressing confidence in Marvell's multi-year revenue outlook and the diversity of customer program ramps. J.P. Morgan reiterated its overweight rating on Marvell and raised its price target from $130 to $135 [1].
CONCLUSION
Marvell's strong earnings beat, optimistic guidance, and positive analyst reactions have driven a sharp 18% rise in its stock price. The company's focus on AI and recent acquisitions are expected to fuel continued growth, with revenue acceleration projected for 2027 and 2028. Market sentiment is highly positive, reflecting confidence in Marvell's outlook and execution.