Evercore ISI raises Marvell stock price target on AI growth outlook

Evercore ISI has increased its price target for Marvell Technology (NASDAQ:MRVL) stock to $433, marking an upward revision from a prior level. This rating upgrade comes with an "Outperform" recommendation. The company's stock has experienced a remarkable 206% growth over the past year, reaching $287 and a 220% increase year-to-date. The $433 target price is slightly below the Street-high forecast of $450, although analysts from InvestingPro suggest the stock might be overvalued at present.

The price target is based on a projected earnings per share (EPS) of $32 by 2030, discounted over three years. Evercore ISI highlighted three key points from Marvell's analyst day presentation: the company's significant investments of $40 billion in mergers and acquisitions and organic research & development to create IP for AI workloads; its robust IP portfolio and business model that position it as a supplier for merchant, semi-custom, and custom solutions to hyperscalers implementing various network and data center topologies; and strong visibility into future revenue growth, with an estimated $70 billion to $90 billion in 2030 revenues, potentially delivering seven times revenue growth over the next four years.

Marvell's momentum is evident, with a 31% revenue growth over the last twelve months and analysts forecasting a 47% growth for fiscal 2027. The $433 target is derived from a 18x Evercore ISI's 2030 EPS estimate of $32, discounted back three years. The bullish outlook is supported by 26 analysts revising their earnings upwards for the upcoming period, and 17 exclusive tips provided by InvestingPro for MRVL investors.

Marvell's recent announcements further bolster its growth prospects. During an investor day, the company raised its fiscal year 2028 revenue outlook to $20 billion, surpassing previous estimates. Additionally, Marvell introduced a framework for fiscal 2031, projecting revenues between $70 billion and $90 billion and EPS exceeding $30, which outpaces current consensus estimates.

Other industry players, such as RBC Capital and Stifel, have also maintained positive ratings and price targets for Marvell, emphasizing its leadership in chip technology and the anticipated contributions from major clients like Google and Microsoft in AI-driven revenue streams.