Marvell Technology experienced a significant surge in its stock price, climbing 18% on Friday following the release of its quarterly earnings report and strong forward guidance, which highlighted continuing robust demand for artificial intelligence applications [1]. 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 its outlook, 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,' during the earnings call [1]. Marvell expects year-over-year revenue growth to accelerate in each quarter of 2027. For the first quarter of 2027, the company projects revenue of $2.4 billion, +/-5%, which is above Wall Street's expectation of $2.27 billion [1].
In fiscal 2026, Marvell's data center revenue surpassed $6 billion, marking a 46% increase from the previous year [1]. The company recently completed acquisitions of Celestial AI and XConn Technologies, which are anticipated to contribute $250 million in aggregate revenue for fiscal 2028 [1]. 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's Harlan Sur noting the impressive multi-year revenue outlook and the diversity of customer program ramps. The bank 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 accelerating AI-driven revenue growth have led to a sharp 18% rise in its stock price. Analysts responded favorably, citing the company's multi-year outlook and recent acquisitions as positive catalysts. The market takeaway is that Marvell is well-positioned for continued growth in the AI and data center sectors.