FINWIRES · TerminalLIVE
FINWIRES

Marvell's AI, Networking Growth to Drive Higher Revenue Through Fiscal 2028, UBS Says

By

Marvell Technology (MRVL) could see stronger growth as demand for custom AI chips, optical products and networking switches increases, while Alphabet's (GOOG, GOOGL) Google-related programs could provide more upside from fiscal 2029, UBS said in a note emailed Friday.

Marvell now expects about $12 billion in fiscal 2027 revenue, up from its previous $11.5 billion outlook, while fiscal 2028 revenue could reach about $18 billion, above the previous $16.5 billion forecast, as data center revenue is expected to grow sharply and custom business anticipated to more than double, according to the note.

The investment firm said it expects Marvell's custom chip business to speed up in H2 of fiscal 2027, helped by existing and new XPU programs, while Google-related projects could become a bigger source of growth from fiscal 2029.

Strong demand for 800G and 1.6T optical products, along with growing AI networking needs, should support sales, while switching revenue could also exceed earlier expectations, the investment firm said.

UBS raised its 2028 earnings estimate to $10.86 per share from $10.31, while keeping its buy rating and $310 price target for Marvell.

Price: $216.87, Change: $-24.58, Percent Change: -10.18%

Related Articles

Wire

Update: PagerDuty Q2 Adjusted Earnings, Revenue Rise; Company Plans 15% Workforce Cut

(Updates with job cuts in the penultimate paragraph.)PagerDuty (PD) reported Thursday Q2 adjusted earnings of $0.32 per diluted share, up from $0.30 a year earlier.Analysts polled by FactSet expected $0.31.Revenue for the quarter ended July 31 rose to $124.4 million from $123.4 million a year earlier.Analysts projected $123.3 million.The company expects Q3 adjusted EPS of $0.34 to $0.36 on revenue of $123 million to $125 million. Analysts project EPS of $0.34 on revenue of $124.4 million.PagerDuty expects 2027 adjusted EPS of $1.33 to $1.37 on revenue of $491.5 million to $496.5 million. Analysts project EPS of $1.32 on revenue of $494.2 million.In a regulatory filing, the company said it plans to cut 15% of its workforce as part of a restructuring and record non-recurring charges of $5.5 million to $7.5 million related to the move.PagerDuty shares fell 2.4% in after-hours trading.

$PD
Wire

Affirm Fiscal Q4 Earnings, Revenue Rise; Shares Gain After-Hours

Affirm Holdings (AFRM) reported fiscal Q4 net income late Thursday of $4.62 per diluted share, up from $0.20 a year earlierAnalysts polled by FactSet expected $0.35, if comparable.Revenue for the quarter ended June 30 was $1.17 billion, up from $876.4 million a year earlier.Analysts expected $1.11 billion.For fiscal Q1, the company expects revenue of $1.19 billion to $1.22 billion.Analysts are looking for $1.16 billion.Shares rose over 6% in after-hours activity.

$AFRM
Wire

Elastic Q1 Adjusted Earnings, Revenue Rise; Shares Surge After Hours

Elastic (ESTC) reported fiscal Q1 non-GAAP earnings late Thursday of $0.70 per diluted share, up from $0.60 a year earlier.Analysts polled by FactSet expected $0.58.Revenue in the three months ended July 31 rose to $478.1 million from $415.3 million a year earlier.Analysts projected $469.7 million.The company expects fiscal Q2 non-GAAP EPS of $0.80 to $0.82 on revenue of $486 million to $487 million.Analysts project EPS of $0.79 on revenue of $483.5 million.Elastic boosted fiscal 2027 guidance to non-GAAP EPS of $3.29 to $3.37 on revenue of $1.998 billion to $2.01 billion, up from the prior forecast of EPS of $3.21 to $3.29 on revenue of $1.985 billion to $2 billion.Analysts expect EPS of $3.24 on revenue of $1.996 billion.Elastic shares jumped 22% in after-hours trading.

$ESTC