Barclays Raises Marvell Price Target to $275

Barclays analyst Tom O’Malley raised the price target on Marvell Technology (NASDAQ: MRVL) to $275.00 (from $150.00) while maintaining an Overweight rating.

“Positive tone across the board with the outlook for this year and next revised upwards again. DC now expected to grow 50% / 55% in FY27/28 with Interconnect more than 70% Y/Y in FY27.

The company is pointing to over $10B of Custom revenue in FY29.

Of the $10B, we think Trainium is ~$3B, XPU attach is ~$3B (CXL, NIC, Other each $1B), and MSFT is the biggest contributor at ~$4-5B.

We had heard from our visit to Asia that Trainium was pulled forward to Q2 but it sounds like Q2 is more of a transition in aggregate with T2 falling off and the beginnings of T3 for a moderate seq. before a more substantial 2H.

The company sounds confident on supply and is going the extra distance by making prepayments ($1B this year) to secure packaging, substrates, wafer capacity, and broad optical capacity.

Our math suggests EPS in the low-teens $ as a starting point for CY28 based on the additional color.

In a world where if you build it, they will come, Marvell stands to be one of the biggest beneficiaries.”

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