Marvell Technology (MRVL) is seeing a stronger long-term growth outlook driven by accelerating artificial intelligence demand, particularly in data center interconnect and custom silicon programs, Morgan Stanley said in a Thursday note.
The analysts said Marvell's fiscal 2027 and 2028 revenue outlooks were raised meaningfully, with data center growth now expected to accelerate to roughly 50% in 2027 and about 55% in 2028, supported by robust demand in AI networking and increasing scale-up and scale-across opportunities.
The data center segment is expected to remain the key growth driver, supported by rising demand for AI interconnects from hyperscale customers, with networking growth expected to outpace broader cloud capex over the medium term, according to the note.
Despite the improved outlook, expectations are rising alongside growth, with execution on networking share gains and timing of custom silicon ramps remaining key factors, even as AI infrastructure demand provides a strong structural tailwind, Morgan Stanley added.
Morgan Stanley maintained its equal weight rating on the stock and raised its price target to $195 from $172.
Price: $195.61, Change: $-3.09, Percent Change: -1.56%