Bank of America made a bold call on Marvell Technology (MRVL) on Friday morning, changing its rating from neutral to buy and raising its price target to $110 from $90. The move came hours after Marvell reported fourth-quarter financial results that sent shares surging more than 16%.
The development came at the right time. Marvell shares had spent much of the past year under pressure, trading below their 52-week high of $102.77. Now, Wall Street is paying attention again.
Analyst Vivek Arya, who covers semiconductors at Bank of America, pointed to two key factors for improvement: Marvell’s growing strength in AI optical connectivity and the much-improved visibility into custom chip systems from both Microsoft and Amazon.
Marvel’s March 5 earnings call gave Arya and her team reason to be furious. The company reported 2026 revenue of $8.19 billion, a record, up 42% year over year. Fourth-quarter revenue reached $2.219 billion, coming in above the midpoint of Marvell’s guidance.
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Non-GAAP earnings per share for the quarter came in at $0.80, a cent above the Wall Street consensus estimate of $0.79. Shares rose to nearly $90 in Friday trading, up nearly 20% from Thursday’s close of $75.68.
Arya noted that the earnings call significantly boosted his confidence in three areas: Marvell’s position in AI optical connectivity, the trajectory of its Amazon XPU (custom processor) revolution, and the potential scale of its upcoming Microsoft chip program.
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Q4 revenue: $2.219 billion, up 22% year over year
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Full-year revenue for 2026: $8.195 billion, up 42% year over year
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Data center revenue in Q4: $1.65 billion, a quarterly record
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Non-GAAP EPS for the full year: $2.84, up 81% year over year
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Revenue guidance for Q1 fiscal 2027: $2.4 billion, above earlier Wall Street estimates
Source: Marvell’s Q4 earnings release
The data center segment, which accounts for 74% of total revenue, is where the real story is written. Custom silicon revenue fell from near zero to $1.5 billion in just one fiscal year, doubling by fiscal year 2026. CEO Matt Murphy said on the earnings call that custom revenue is expected to grow more than 20% in fiscal 2027 and at least double in fiscal 2028.
Marvell’s suite of products is extensive. Its 1.6T optical interconnects entered volume production in the second quarter of fiscal 2026, and the company expects revenue to increase rapidly this year. Data center replacement spending exceeded $300 million in fiscal 2026 and is expected to exceed $600 million in fiscal 2027.
Murphy told analysts that design wins for fiscal year 2026 hit an all-time record, with “quick high-quality” bookings heading into fiscal 2027. He said the company is in what he described as the early stages of a strong multi-year growth cycle.
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Custom XPU silicon: Expected to grow 20%+ in fiscal 2027, at least double in fiscal 2028
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1.6T optical interconnects: Production slated for H2 fiscal 2026, rising rapidly
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Data center replacement: Forecast to exceed $600 million in revenue by 2027
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XPU attach and CXL: Expected to double annually, possibly reaching $1 billion
Source: Marvell’s Q4 earnings release
Marvell’s direction in the coming years gave the bulls plenty of fuel. The company has increased its growth outlook by more than 30% year-on-year, approaching $11 billion. It then went ahead, projecting a fiscal 2028 profit of about $15 billion, about $2 billion more than the outlook it gave in December 2025.
Murphy credited the high revisions to better visibility and tangible customer commitment, especially in the affiliate business. He said the forecast is based on the company’s current situation, not a forecast pipeline.
Non-GAAP EPS for fiscal 2028 is expected to reach more than $5, a figure that would represent a significant increase from the $2.84 reported in fiscal 2026.
Bank of America was not alone in turning more bullish. According to analyst reports, JPMorgan raised its price target on Marvell to as high as $135. Susquehanna has a buy target rating of $140. Rosenblatt also has a $140 target following the earnings release, and both Stifel and Wolfe Research are at $130.
The average analyst price target across all 38 firms stands at about $113, which represents about a 49% upside from Thursday’s closing price. Consistency remains strong in the shopping area.
Bank of America’s Arya called Marvell’s current valuation compelling, noting the stock trades at about 16 times the 2027 calendar year, compared to peers trading at about 29 times. The company sees the $110 target as unchanged from its bull case, with a discounted earnings model pointing to $130 if fiscal 2028 earnings estimates hold.
For investors watching the AI semiconductor space, Marvell’s gains and subsequent flood of analyst upgrades are a sign that the company’s quiet buildup in custom silicon and optical interconnects is starting to show in the numbers in a big way. The question now is whether the stock can hold on to its gains as expectations fall sharply.
Related: Bank of America raises Amazon stock price
This story was originally published by TheStreet on March 7, 2026, where it appeared first in the investing category. Add TheStreet as a favorite source by clicking here.
