Why Marvell Technology Stock Is Moving On Up
Wall Street thinks Marvell stock looks marvelous.
By Rich Smith
For the second day in a row, Marvell Technology (MRVL +6.85%) stock is moving higher -- and this time, you've got Wall Street to thank for it.
Tic-tac-toe, three-in-a-row, Wall Street analysts at Citigroup, Oppenheimer, and Wells Fargo lined up to raise price targets on Marvell stock -- to $215, $200, and $195, respectively.
Why Wall Street loves Marvell stock
Why are Wall Street banks raising price targets on Marvell stock? Let me count the ways.
Citi's mainly playing catch-up here, raising its price targets on semiconductor stocks long after they've already skyrocketed. Yesterday, Citi nearly doubled its price target on Micron (MU +2.36%). Today, it's Marvell's turn, at the PT rises from $118 to $215 (also nearly a double).
As for the others, both Oppy and Wells cite Trainium chip sales to Anthropic, Amazon.com (AMZN +1.83%), and others as a major catalyst for Marvell. Oppenheimer forecasts $2 billion in custom chip sales (including Trainium) this year, with sales to Microsoft (MSFT 0.41%) ramping toward the end of the year. Wells points out that Marvell already has $225 billion in Trainium backlog and predicts Trainium sales could reach $6 billion in 2027 and 2028 -- with the potential to double if prices move higher.
Oppenheimer forecasts total revenue exceeding $11 billion in 2026 and $15 billion in 2027.
What it means for Marvell stock
Valued in excess of 57 times trailing earnings (and nearly 46 times forward earnings), Marvell is not a cheap stock -- not at first glance. Even just $11 billion in 2026 sales would mean 34% revenue growth, however, accelerating to 36% growth in 2027 if Marvell hits 2027 -- and Oppenheimer thinks these are conservative numbers.
Assuming profits growth can keep pace, Marvell stock may not yet be too expensive to buy.