Marvell's Bullish Financial Targets Boost Stock's Long-Term Buy Appeal, Oppenheimer Says

11:11 AM EDT, 10/07/2026 (MT Newswires) -- Marvell Technology's (MRVL) upgraded near-term revenue targets and equally-bullish multiyear guidance support the stock's status as a compelling choice for long-term investors, Oppenheimer said in a Wednesday note. At its investor day on Tuesday, the chip designer announced a new fiscal 2028 revenue target of $20 billion, up from the previous goal of $18 billion. The updated guidance would represent a growth of about 67% year over year, Chief Executive Matthew Murphy said, according to a FactSet transcript. Analysts in a FactSet poll are looking for sales of $12.06 billion for fiscal 2027, $19.43 billion for fiscal 2028, and $30.96 billion for fiscal 2029. Marvell also lifted its fiscal 2029 custom chip revenue goal, expecting over $12 billion in sales, which would be more than triple the prior year's projected level, according to Murphy. The previous guidance was $10 billion. At the same time, management announced a fiscal 2031 revenue outlook of between $70 billion and $90 billion, or $80 billion at the midpoint. Wall Street is currently looking at $70.36 billion in sales for that fiscal year. Murphy said the Marvell's earnings per share by 2031 are expected to be "greater than $30" at the midpoint. The Street is projecting $28.26. "We see (Marvell's) structural growth story accelerating into next year and remain long-term buyers," Oppenheimer analysts Rick Schafer and Trevor Bowers said in the report. The brokerage, which has an outperform rating on Marvell, raised its price target on the stock to $425 from $325. Murphy said the company's long-term financial targets take into account a 35% compounded annual growth rate for cloud service providers' data center capital spending for calendar years 2025 to 2030 to roughly $3 trillion. The Oppenheimer analysts described that assumption as conservative. Murphy said the update to the fiscal 2029 custom chip revenue target was primarily driven by what he described as "rapidly expanding XPU attach opportunity we see in front of us, including the strategic agreement that we announced in August." In that month, the company announced its custom chip partnership with Alphabet (GOOG, GOOGL). "The XPU attach opportunity continues to expand every day, and more importantly, this is not a single customer and it is not a single socket," Murphy said. "We're seeing a broad set of product wins across multiple customers and multiple programs." Other major AI chipmakers have also painted a positive revenue outlook amid still-strong demand for chips driven by massive AI adoption activities. In August, Nvidia (NVDA) said it expects fiscal 2028 revenue to grow about 70% year-over-year. Earlier this month, Broadcom (AVGO) said it anticipates its AI revenue will double in fiscal 2027 to approximately $115 billion. Broadcom's (AVGO) guidance that its artificial intelligence revenue will double in fiscal 2027 was slightly below Wall Street's consensus but the company is likely to "handily" top the projection, Truist Securities said in a note earlier this month. Shares of Marvell were down 2% intraday Wednesday, following a 5.8% gain in the previous session. The stock has surged 231% so far this year. Price: 282.64, Change: -4.37, Percent Change: -1.52