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Marvell: Rating Upgrade On Data Center Boom
Khaveen Investments · 2026-04-11 · via All Articles on Seeking Alpha

Summary

  • We upgrade our rating on Marvell Technology to a Strong Buy, driven by robust Data Center segment growth and improved profitability.
  • Marvell's Data Center revenue, comprising 74% of total sales, grew 46% YoY, led by interconnects and custom AI accelerators, with continued strong guidance through FY2027.
  • Interconnects and custom AI accelerators are expected to drive a 5-year forward growth rate of 34%, supported by hyperscaler partnerships and a broad connectivity portfolio.
  • Margins are set to improve further as Marvell scales, with operating leverage, cost discipline, and ongoing product innovation mitigating risks from emerging interconnect technologies.
Marvell Technology Group operating headquarters in Silicon Valley

Sundry Photography/iStock Editorial via Getty Images

By Anthony Goh, Senior Investment Research Analyst @ Khaveen Investments

In our previous analysis, we examined Marvell’s (MRVL) Data Center segment and believed its growth would be driven primarily by custom

Analyst’s Disclosure: I/we have a beneficial long position in the shares of MRVL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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