Bank of America revamps Marvell stock price for 2026

Bank of America made a bold telephone connected Marvell Technology (MRVL) Friday morning, flipping its standing from neutral to bargain and lifting its terms people to $110 from $90. The determination came hours aft Marvell reported blowout fiscal fourth-quarter results that sent shares surging much than 16%.

The upgrade arrived astatine conscionable the close moment. Marvell shares had spent overmuch of the past twelvemonth nether pressure, trading good beneath their 52-week precocious of $102.77. Now, Wall Street is paying adjacent attraction again.

Analyst Vivek Arya, who covers semiconductors astatine Bank of America, pointed to 2 circumstantial catalysts for the upgrade: Marvell's increasing spot successful AI optical connectivity and sharply improved visibility connected customized spot programs with some Microsoft and Amazon.

Marvell's March 5 net telephone gave Arya and his squad a crushed to get much aggressive. The institution reported fiscal 2026 gross of $8.19 billion, a record, up 42% twelvemonth implicit year. Fourth-quarter gross deed $2.219 billion, coming successful supra the midpoint of Marvell's ain guidance.

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Non-GAAP net per stock for the 4th reached $0.80, a penny supra the Wall Street statement estimation of $0.79. Shares spiked to astir $90 successful Friday trading, up astir 20% from Thursday's adjacent of $75.68.

Arya noted that the net telephone importantly raised his assurance successful 3 things: Marvell's presumption successful AI optical connectivity, the trajectory of its Amazon XPU (custom processor) transition, and the imaginable standard of its upcoming Microsoft spot program.

• Q4 revenue: $2.219 billion, up 22% twelvemonth implicit year

• Full-year fiscal 2026 revenue: $8.195 billion, up 42% twelvemonth implicit year

• Data halfway gross successful Q4: $1.65 billion, a quarterly record

• Non-GAAP EPS for the afloat year: $2.84, up 81% twelvemonth implicit year

• Q1 fiscal 2027 gross guidance: $2.4 billion, good supra anterior Wall Street estimates
  Source: Marvell's Q4 net release

The information halfway segment, which accounted for 74% of full revenue, is wherever the existent communicative is being written. Custom silicon gross scaled from adjacent zero to $1.5 cardinal successful conscionable 1 fiscal year, doubling successful fiscal 2026. CEO Matt Murphy said connected the net telephone that customized gross is expected to turn much than 20% successful fiscal 2027 and astatine slightest treble again successful fiscal 2028.