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Marvells Custom Silicon Push Drives Bullish Outlook Amid Strong Q2 Earnings
Marvell Technology Inc. (NASDAQ:MRVL) has just delivered a record‑breaking fiscal second quarter, sparking a bullish rally that points to a custom‑silicon business that could more than double in fiscal 2028.
In the quarter that ended August 27, 2026, Marvell posted net revenue of $2.739 billion—a 37% jump from the same period a year earlier. Data‑center sales, the company’s largest segment, surged 46% year‑over‑year to $2.172 billion and now represent 79% of total revenue. Non‑GAAP earnings per share came in at $0.94, slightly above the consensus estimate of $0.928.
Guidance is upbeat: management projects fiscal 2027 revenue of roughly $12 billion and lifts its fiscal 2028 target to about $18 billion, up from the previously forecast $16.5 billion. The upside hinges on Marvell’s expanding custom‑silicon portfolio. The company says the segment is expected to more than double year‑over‑year in fiscal 2028 and accelerate further in fiscal 2029, with a projected revenue of over $10 billion in that year.
A key driver is the deepening partnership with Google, which now covers inference accelerators, storage controllers, network interface cards, memory‑interface controllers and near‑memory compute. CEO Matt Murphy described the opportunity as “just massive for Marvell and game‑changing.”
Analysts note that the custom‑silicon business typically carries lower margins. Forbes reports that Marvell expects non‑GAAP gross margins to fall to 57.5‑58.5% and remain in that range through fiscal 2028.
24/7 Wall St. has set a price target of $281.53 for Marvell, implying a 24.9% upside from the current share price. The firm’s recommendation is a buy with a 90% confidence level, citing the company’s strong earnings performance and the anticipated acceleration of its custom‑silicon revenue.
Despite the positive outlook, Marvell was not included in 24/7 Wall St.’s newly released “Top 10 Stocks to Buy Now” list. The report, available for free on the firm’s website, highlights other names that the analysts believe offer better value at present.
Marvell’s shares have been a high‑growth story over the past year. The stock is up 242.26% over the last 12 months, climbing from a 52‑week low near $66 to its current level. The company’s 2026 fiscal year revenue was $8.2 billion, and it employs approximately 7,500 people.
Market participants are watching Marvell’s upcoming earnings for guidance on the custom‑silicon segment and the company’s margin profile. Analysts will also be looking for updates on the company’s data‑center sales, which have been a key growth engine.
In summary, Marvell’s recent earnings and forward guidance support a bullish view that the custom‑silicon business will drive significant revenue growth in the coming years. The company’s price target reflects this optimism, but investors should note the lower margins associated with the custom segment and the fact that Marvell was not highlighted in a recent top‑stock list.
The next key event for Marvell is its fiscal 2028 earnings announcement, scheduled for the first quarter of 2028. Investors will be looking for updates on the custom‑silicon revenue trajectory, margin performance, and any new partnerships that could influence the company’s growth prospects.
In the quarter that ended August 27, 2026, Marvell posted net revenue of $2.739 billion—a 37% jump from the same period a year earlier. Data‑center sales, the company’s largest segment, surged 46% year‑over‑year to $2.172 billion and now represent 79% of total revenue. Non‑GAAP earnings per share came in at $0.94, slightly above the consensus estimate of $0.928.
Guidance is upbeat: management projects fiscal 2027 revenue of roughly $12 billion and lifts its fiscal 2028 target to about $18 billion, up from the previously forecast $16.5 billion. The upside hinges on Marvell’s expanding custom‑silicon portfolio. The company says the segment is expected to more than double year‑over‑year in fiscal 2028 and accelerate further in fiscal 2029, with a projected revenue of over $10 billion in that year.
A key driver is the deepening partnership with Google, which now covers inference accelerators, storage controllers, network interface cards, memory‑interface controllers and near‑memory compute. CEO Matt Murphy described the opportunity as “just massive for Marvell and game‑changing.”
Analysts note that the custom‑silicon business typically carries lower margins. Forbes reports that Marvell expects non‑GAAP gross margins to fall to 57.5‑58.5% and remain in that range through fiscal 2028.
24/7 Wall St. has set a price target of $281.53 for Marvell, implying a 24.9% upside from the current share price. The firm’s recommendation is a buy with a 90% confidence level, citing the company’s strong earnings performance and the anticipated acceleration of its custom‑silicon revenue.
Despite the positive outlook, Marvell was not included in 24/7 Wall St.’s newly released “Top 10 Stocks to Buy Now” list. The report, available for free on the firm’s website, highlights other names that the analysts believe offer better value at present.
Marvell’s shares have been a high‑growth story over the past year. The stock is up 242.26% over the last 12 months, climbing from a 52‑week low near $66 to its current level. The company’s 2026 fiscal year revenue was $8.2 billion, and it employs approximately 7,500 people.
Market participants are watching Marvell’s upcoming earnings for guidance on the custom‑silicon segment and the company’s margin profile. Analysts will also be looking for updates on the company’s data‑center sales, which have been a key growth engine.
In summary, Marvell’s recent earnings and forward guidance support a bullish view that the custom‑silicon business will drive significant revenue growth in the coming years. The company’s price target reflects this optimism, but investors should note the lower margins associated with the custom segment and the fact that Marvell was not highlighted in a recent top‑stock list.
The next key event for Marvell is its fiscal 2028 earnings announcement, scheduled for the first quarter of 2028. Investors will be looking for updates on the custom‑silicon revenue trajectory, margin performance, and any new partnerships that could influence the company’s growth prospects.
