Needham raises Marvell stock price target to $400 on data center growth

Needham has increased its stock price target for Marvell Technology Inc. (MRVL) to $400, up from $300, while keeping a Buy rating. The company's shares have risen by over 230% in the last year, but analysts at InvestingPro believe the stock may be overvalued at current prices. Marvell is a key player in the Semiconductors & Semiconductor Equipment industry.

The price target upgrade comes after Marvell's 2026 Analyst Day in New York City. During this event, the company presented a long-term financial model projecting revenue between $70 billion and $90 billion and non-GAAP earnings per share over $30 in fiscal year 2031. If revenue reaches the midpoint of $80 billion, interconnect is expected to generate around $37.5 billion, custom solutions about $30 billion, switching and storage to reach approximately $10 billion, and communications and other segments to stay flat at around $2.5 billion.

Marvell raised its fiscal 2028 revenue forecast to $20 billion from $18 billion, driven by its data center connectivity portfolio. The fiscal 2029 custom revenue target was raised to over $12 billion from approximately $10 billion, thanks to semi-custom and IP-led solutions across various sectors like networking, storage, memory, security, and inference acceleration.

Based on its fiscal 2028 non-GAAP earnings per share estimate of $13.00, Marvell's new $400 target translates to about 31 times that estimate.