Marvell Technology (MRVL) is poised to see upside in its fiscal Q1 results and Q2 outlook, boosted by AI networking and custom application-specific integrated circuits as cloud service providers continue to scale their data center buildouts, Oppenheimer said in a Tuesday note.
Oppenheimer said that the top four cloud service providers look to spend over $710 billion this year on data centers, up from $480 billion previously, providing robust order visibility for critical infrastructure providers like Marvell Technology.
The brokerage said it sees management's 2026 and 2027 top-line targets of $11 billion and $15 billion or more as a "floor," with material upside possible as advanced wafer capacity improves.
Marvell has over 20 custom chip building projects in total, with XPU and XPU attach revenue slated to be over $2 billion in calendar year 2026, doubling to $4 billion in 2027 and rising to $10 billion in 2028, Oppenheimer said.
Oppenheimer maintained its outperform rating along with $200 price target.
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