Marvell Price Target Gets Boost as Rally Looks Like It’s Just Getting Started
Marvell Technology ($MRVL) reached a three-month high earlier this week. Shares of the AI-focused semiconductor manufacturer have now gained 24% over the past month, and 156% over the past six months.
The stock surged after Marvell raised its revenue projection from $18 billion to $20 billion for fiscal year 2028. The company says it’s targeting $70 billion to $90 billion in revenue by fiscal 2031.
In fiscal year 2026, the company brought in a record $8.2 billion in revenue. According to Marvell’s new projections, the company could 10X that figure in less than five years.
For the full year ending on Jan. 31, Marvell earned $2.84 per share. The company expects to make 10-times that figure, projecting earnings of $30 per share by fiscal 2031.
Analysts Weigh In
Analysts responded to the news. RBC Capital now sees Marvell headed to $425, a gain of about 50% from Wednesday’s closing price. Piper Sandler raised its target price from $270 to $400. TD Cowen upgraded the stock to a buy rating, with a $350 target price.
Earlier this year, Nvidia CEO Jensen Huang predicted that Marvell would eventually reach a market capitalization of $1 trillion. Marvell’s current market cap is approximately one-quarter of a trillion. If the number of shares in circulation remains constant, the stock would need to rise to $1,130 in order to achieve that milestone.
Charting Marvell Technology
Technically, Marvell has broken out of a cup-and-handle pattern (shaded yellow). That bullish pattern projects the stock to the $350 area, which would put Marvell at a new all-time high. The only obstacle in Marvell’s path is resistance in the vicinity of the stock’s current all-time high, just below $330 (black dotted line).
Charts via Tradingview
We first purchased Marvell Technology three months ago. We initially purchased the stock on a breakout, and were able to add shares on a pullback, as described here.
While the shares suffered a drawdown, Marvell never broke below its 200-day moving average (red). When Marvell shot higher by nearly 6% on Tuesday, our combined position finally turned profitable.
If I didn’t already own the stock, I’d be looking to buy. AI-focused chip manufacturers are heating up again, with market leader Nvidia trading at all-time highs earlier this week.
Another one of our holdings in the sector, Advanced Micro Devices ($AMD), also reached an all-time high earlier this week. AMD is keeping pace with Marvell, gaining about 26% over the past month, and 187% over the past six months.
At the time of publication, Ponsi was long MRVL NVDA and AMD.
