RBC Capital Raises Marvell Price Target to $170

RBC Capital analyst Srini Pajjuri raised the price target on Marvell Technology (NASDAQ: MRVL) to $170.00 (from $115.00) while maintaining an Outperform rating.

“Raise PT to $170 on NT Optical strength and improving Trainium visibility; MRVL supplies Trainium ASICs, Ethernet Switches, DPUs, and Optical DSPs to AWS and we believe is a key beneficiary from the agreement.

We estimate each GW amounts to $2.5 to $3B of XPU SAM of which we expect MRVL to account for at least half.

We are modeling ~$1.6b (up ~17%) in custom silicon revenues from AWS this year and expect upside to be somewhat constrained due to tight 3nm wafer supply.

We see room for near-term upside primarily from PAM-4 optical connectivity strength and believe that the AWS/Anthropic agreement will help sustain strong double-digit growth momentum into FY28 and beyond.

For FY28, our model shows 50% growth at AWS, which we believe has potential upside.

MRVL’s opportunity with Trn4 looks even more compelling given its optical scale-up (Celestial AI), UALink, and NVLink Fusion portfolio.

We are leaving our estimates unchanged and are raising our PT from $115 to $170.

Our new PT is based on 31x CY27 our EPS estimate of $5.51 (prior 21x), which we believe is justified given improving visibility at AWS, strong optical demand, and upcoming ramp of MSFT ASIC.

Reiterate Outperform.”

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