Barclays lifts Marvell Technology target to $275 on AI infrastructure outlook
Shares trade at $196.32 as Wall Street consensus shifts higher, with peers at Deutsche Bank, Goldman Sachs and KeyBanc also raising forecasts
Barclays analyst Tom O’Malley has raised his price target for Marvell Technology to $275 from $150, maintaining an overweight rating following the company’s first quarter of fiscal 2027 earnings release on 27 May. The 83 per cent increase in the valuation reflects Marvell’s upward revision to its outlook for fiscal 2027 and 2028, driven by projected data centre growth of 50 per cent and 55 per cent respectively.
Marvell reported first quarter revenue of $2.42 billion, representing a 9 per cent sequential increase, with the data centre segment leading performance with 11 per cent sequential growth. Management forecast that revenue growth would continue accelerating each quarter for the remainder of the fiscal year, while second quarter guidance came in modestly above Wall Street estimates.
The Barclays thesis centres on the structural shift in hyperscaler spending towards custom silicon and high-speed interconnects. Interconnect revenue is projected to rise more than 70 per cent year-on-year in fiscal 2027, while custom silicon revenue is expected to exceed $10 billion by 2028. These metrics underpin the firm’s conviction that Marvell is well-positioned to benefit from sustained artificial intelligence infrastructure investment.
At the time of the note, Marvell shares were trading at approximately $196.32, with a market capitalisation of $171 billion. The stock has gained 208 per cent over the past 12 months, having recorded 42 per cent revenue growth over the trailing twelve months. The revised target implies approximately 40 per cent upside from current levels, reflecting Barclays’ view that the multi-year AI infrastructure framework is credible.
Other institutions have similarly adjusted their positions, with Deutsche Bank raising its target to $240, KeyBanc to $260, and Goldman Sachs to $180. O’Malley’s aggressive raise signals that Barclays sees the current semiconductor cycle as having more duration than market consensus currently reflects, though execution risks remain regarding hyperscaler capital expenditure and product ramp schedules.
