BMO raises Marvell stock price target on AI data center outlook

BMO Capital increased its price target for Marvell Technology stock to $325, up from $250, while keeping a Market Perform rating. Despite a 231% increase in stock value over the past year, analysts consider the shares potentially overvalued. This adjustment stems from Marvell's optimistic outlook on AI data center expansion during an investor day presentation.

The company anticipates robust growth in AI compute and network segments, driven by sustained AI capital spending. The data center sector is projected to experience a 63% compound annual growth rate over the long term, outpacing the 35% compound annual growth rate expected for cloud service provider and hyperscaler spending. Marvell has raised its fiscal year 2028 revenue estimate to $20 billion from $18 billion, with data center revenues now projected at $18 billion, up from the prior estimate of around $15 billion.

The company expects fiscal year 2031 revenues to range between $70 billion and $90 billion, with earnings per share surpassing $30. This bullish assessment aligns with the views of 26 other analysts who have raised their earnings forecasts for Marvell. Marvell's improved outlook is echoed by other analysts, who have raised their price targets following the company's recent investor day.

Wolfe Research raised its target to $375, maintaining an Outperform rating, while RBC Capital increased its price target to $425, citing Marvell's leadership in interconnect solutions and custom silicon development. StoneX also adopted Wolfe Research's $375 target, emphasizing Marvell's potential in the artificial intelligence market.

KeyBanc maintained its Overweight rating and price target of $400, expressing confidence in Marvell's long-term targets and projecting a conservative earnings per share of $30. Stifel raised its target to $370, adopting a Buy rating, and provided a fiscal 2031 revenue projection of $70 billion to $90 billion, with a midpoint estimate of $80 billion.

These reactions highlight a strong bullish sentiment toward Marvell Technology, fueled by the company's growth prospects in AI and custom silicon markets.