Marvell Technology's shares surged more than 24% in premarket trading on Tuesday after Nvidia CEO Jensen Huang called the chipmaker the next "trillion-dollar company."
Marvell Technology, Inc. has surged +125% since my last Strong Buy, but I now rate it Hold due to valuation concerns. MRVL's business thesis has strengthened, with record Q1 operating cash flow and robust AI-driven data center revenue growth. At $205, MRVL stock trades at ~70x trailing and 50x forward earnings, with limited margin of safety and consensus showing only 8% further upside.
Nvidia Validated Marvell's Biggest Growth Driver
Explore how Marvell's (MRVL) revenue from international markets is changing and the resulting impact on Wall Street's predictions and the stock's prospects.
Marvell Technology (MRVL) is capitalizing on soaring custom AI chip demand and robust Data Center buildouts, driving record financial performance. MRVL reported record Q1 revenues of $2.4B, up 28% year-over-year, and delivered a beat on both top and bottom lines. An expanding AI-driven custom silicon business positions MRVL as an essential enabler of hyperscale AI infrastructure.
Marvell Technology's AI chip demand is driving revenue growth, but gross margin remains under pressure as custom silicon costs rise and competition intensifies.
Marvell Technology's NASDAQ: MRVL market signaled a top in late May, gapping up after the strong fiscal Q1 2027 results to fall from the high and create an ominous candle.
MRVL's AI-fueled data center growth drives record Q1 revenues as MRVL raises fiscal 2027 and 2028 outlooks.
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Marvell boosts FY27 and FY28 revenue targets as AI networking demand surges, spotlighting interconnect, switching and custom silicon momentum.