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Marvell Quarterly Results Poised for Upside Led by AI, Customer Wins, Oppenheimer Says

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Marvell Quarterly Results Poised for Upside Led by AI, Customer Wins, Oppenheimer Says

Marvell Technology (MRVL) could top expectations for its fiscal second-quarter results and provide an upbeat outlook amid artificial intelligence strength and growing customer wins, Oppenheimer said in a note e-mailed Friday.

The chip designer is scheduled to report second-quarter results Thursday. Oppenheimer expects earnings of $0.94 a share on revenue of about $2.73 billion for the quarter. Analysts polled by FactSet are looking for $0.93 and $2.71 billion, respectively.

"We see upside to (second-quarter) results and (third-quarter) outlook led by AI as (cloud service provider data center) builds scale and (Marvell) wins ramp," Oppenheimer analysts Rick Schafer and Trevor Bowers said in a note to clients.

The company's data center business is expected to see double-digit percentage growth both sequentially and annually in the quarter amid "tight" supply, the analysts said.

Earlier this week, Marvell entered into a deal that would allow Alphabet's (GOOG, GOOGL) Google to purchase up to $12.18 billion of Marvell shares as part of a collaboration.

Oppenheimer expects cloud service provider capital expenditures at roughly $750 billion in 2026 and $1 trillion next year, providing "robust order visibility" for Marvell and other key infrastructure providers.

"Over 20 custom (application-specific integrated circuit) plus offload wins validate (management's) expectation for custom AI ASIC sales to double next year before exceeding $10 (billion) in (2028)," the analysts said.

Oppenheimer projects Marvell's revenue at $11.77 billion in fiscal 2027 and $16.81 billion next year, as well as a path to $11 to $12 earnings per share in 2028, according to the note.

The brokerage raised its price target on the Marvell stock to $300 from $250 while reiterating its outperform rating, saying it continues to be a "long-term" buyer.

The company's shares were down 5.4% in Friday late-afternoon trade. So far in 2026, the stock has surged 179%.

Earlier this week, UBS Securities raised its estimates on Marvell ahead of its fiscal second-quarter results, citing accelerating AI spending by major hyperscalers, strong demand for optical and networking products, and momentum in its custom chip programs with Microsoft (MSFT) and Google.

Price: $237.22, Change: $-13.79, Percent Change: -5.49%

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