AI ASIC and optical interconnect dual engine roaring! On the eve of the financial report, Wall Street collectively raised the target price for Marvell Technology, Inc. (MRVL.US).

At Marvell Technology, Inc. (MRVL.US), ahead of the announcement of the first quarter financial report for fiscal year 2027 after the US stock market closes on May 27, numerous Wall Street investment banks have raised their target prices and maintained a bullish rating. Analysts generally believe that the surge in demand for AI custom chips (ASICs), accelerated growth in data center interconnect business, and continued expansion of capital expenditures by super-scale cloud customers will continue to support the bullish thesis for Marvell Technology, Inc. ASICs and AI custom chips become the core drive In a report on May 21, Citigroup substantially raised the target price for Marvell Technology, Inc. from the previous $118 to $215, and reiterated a "buy" rating. The bank specifically pointed out that demand for Trainium 2 ASICs remains strong, prompting analysts to raise profit forecasts and express solid expectations for the upcoming financial report. Stifel followed suit, raising its target price from $140 to $210 on May 22, also maintaining a "buy" rating. The analysts at the bank emphasized the strengthening growth trajectory of the data center business through Marvell's partnership with NVIDIA Corporation (NVDA.US) and the increase in capital expenditures by super-scale cloud computing companies. They expect the company to deliver a quarterly performance that exceeds expectations. Previously, Wells Fargo & Company raised its target price for the stock from $135 to $195, giving it a "hold" rating. The bank admitted that with a price-to-earnings ratio of over 30 times based on earnings expectations for 2027, the background of the release of the first quarter results of fiscal year 2027 is indeed harsh; but the deployment of AWS Trainium, the volume growth of XPU-related products, and the strong momentum in interconnect products are expected to bring sufficient upside potential to support the bullish rating. AI Inference Era Drives Broadening Demand Evercore ISI raised its target price for Marvell Technology, Inc. from $133 to $155 on May 19, maintaining an "outperform" rating. Through first quarter AI channel surveys, the institution found that AI workloads are transitioning from a market primarily focused on training to one primarily focused on inference, a trend expected to solidify by the end of 2026. The cost-efficient considerations resulting from this have significantly increased interest from super-scale customers in developing their own ASICs and other alternative accelerators, an area where Marvell Technology, Inc. is deeply entrenched. On the same day, Melius Research raised the target price for Marvell Technology, Inc. from $140 to $220, with a "buy" rating. The analyst at the institution, Ben Reitz, pointed out that although macro events have not brought additional positives, the fundamentals of AI and storage semiconductor companies are becoming "progressively better." Melius substantially raised long-term forecasts and target prices for multiple chip stocks and explicitly stated that in the long term, semiconductor companies will capture more market value growth potential than traditional software companies and non-semiconductor members of the "Big Seven." Building Data Center Interconnect Blueprint In addition to AI chips, the market has also priced in Marvell Technology, Inc.'s leading position in the high-speed data center interconnect field. Oppenheimer raised its target price from $170 to $200 on May 20, maintaining an "outperform" rating, with a focus on the company's significant market share in the wired network market and its growth potential. Furthermore, the company announced the acquisition of Polariton Technologies in April, bringing plasmonic silicon photonics technology under its umbrella, aimed at providing higher bandwidth and energy efficiency for the next generation of optical interconnects, supporting the evolution towards single channel 3.2T or even higher rates. Sandeep Barali, President of the Data Center Group, stated that the acquisition "expands our optical roadmap," further solidifying its position in the high-speed connectivity field for cloud and AI infrastructure.