Download PDF

1. Company Snapshot

1.a. Company Description

Marvell Technology, Inc., together with its subsidiaries, designs, develops, and sells analog, mixed-signal, digital signal processing, and embedded and standalone integrated circuits.It offers a portfolio of Ethernet solutions, including controllers, network adapters, physical transceivers, and switches; single or multiple core processors; ASIC; and printer System-on-a-Chip products and application processors.The company also provides a range of storage products comprising storage controllers for hard disk drives (HDD) and solid-state drives that support various host system interfaces consisting of serial attached SCSI (SAS), serial advanced technology attachment (SATA), peripheral component interconnect express, non-volatile memory express (NVMe), and NVMe over fabrics; and fiber channel products, including host bus adapters, and controllers for server and storage system connectivity.


It has operations in the United States, China, Malaysia, the Philippines, Thailand, Singapore, India, Israel, Japan, South Korea, Taiwan, and Vietnam.Marvell Technology, Inc.was incorporated in 1995 and is headquartered in Wilmington, Delaware.

Show Full description

1.b. Last Insights on MRVL

Breaking News: Marvell Technology Inc. reported strong Q3 earnings, beating estimates with record revenue, driven by surging data center demand. The company announced the acquisition of Celestial AI to expand AI capabilities. Analysts raised forecasts, expecting AI revenue to potentially double by 2028. Despite softness in auto/industrial, Marvell provided upbeat Q4 guidance. Analysts recommend a buy, citing growth prospects. The company raised its data center growth outlook, driven by strong demand for its products. Several analysts have raised their forecasts following the upbeat earnings release.

1.c. Company Highlights

2. Marvell Technology's Strong Q3 Earnings Driven by Data Center Growth

Marvell Technology reported record revenue of $2.075 billion for the third quarter of fiscal 2026, a 3% sequential increase and 37% year-over-year growth. The company's non-GAAP earnings per share of $0.76 exceeded guidance, with a non-GAAP gross margin of 59.7% and non-GAAP operating margin of 36.3%. The data center business drove growth, with revenue up 38% year-over-year, fueled by AI demand. Analysts had estimated EPS of $0.743, making the actual EPS of $0.76 a positive surprise.

Publication Date: Dec -04

📋 Highlights
  • Record Revenue Growth:: Marvell reported $2.075 billion in Q3 2026 revenue, a 37% YoY increase and 3% sequential growth, driven by strong data center demand.
  • Data Center Dominance:: Data center revenue surged 38% YoY to $1.52 billion, with AI and optical interconnects driving double-digit sequential growth in storage and switching.
  • Celestial AI Acquisition:: The $500M–$1B in annualized revenue from Celestial AI by 2028–2029 is expected to accelerate rack-scale photonic fabric adoption and earnings accretion.
  • XPU Market Expansion:: Marvell projects XPU attach market revenue exceeding $2 billion by fiscal 2029, supported by 18+ design wins and 10% of a $75B lifetime revenue opportunity.
  • 2027 Revenue Guidance:: Fiscal 2027 data center growth is forecast to outpace 25% YoY, with total revenue targeting $2.2 billion in Q4 and non-GAAP margins remaining stable at 59.5%–58.5%.

Data Center Business Driving Growth

The company's data center revenue was $1.52 billion, up 38% year-over-year. Marvell is seeing strong demand for its optical interconnect businesses, and its data center storage and switch businesses posted double-digit sequential revenue growth. The custom business is expected to grow by at least 20% next year, driven by its growing portfolio of design wins. Marvell has secured multiple design wins across several hyperscalers for custom foundational and Smart NICs.

Strategic Acquisition of Celestial AI

Marvell announced a strategic acquisition of Celestial AI, a photonic fabric platform provider, for an undisclosed amount, expected to close in the first quarter of next year. The acquisition is expected to generate $500 million in annualized revenue by the fourth quarter of fiscal 2028 and $1 billion by the fourth quarter of fiscal 2029. According to CEO Matthew Murphy, the acquisition will contribute significantly to Marvell's growth, with a focus on providing rack-level solutions.

Outlook and Valuation

Marvell forecasts total company revenue of $2.2 billion for the fourth quarter. For fiscal 2027, Marvell expects data center revenue to grow over 25% year-over-year. Analysts estimate next year's revenue growth at 41.9%. With a P/E Ratio of 34.87 and P/S Ratio of 11.09, the market has already priced in significant growth expectations. The EV/EBITDA ratio of 20.16 suggests that Marvell's valuation is reasonable compared to its earnings before interest, taxes, depreciation, and amortization.

Conclusion on Growth Prospects

Marvell's strong Q3 earnings and guidance for the fourth quarter demonstrate its growth momentum, driven by its data center business and strategic acquisition of Celestial AI. With a solid pipeline of design wins and a growing portfolio of custom products, Marvell is well-positioned to capitalize on the growing demand for AI and data center infrastructure.

3. NewsRoom

Card image cap

Stock Of The Day: Is The Marvell Technology Rally Over Already?

Dec -04

Source: benzinga.com

Card image cap

Marvell Is Still Mispriced. Buy Before Wall Street Wakes Up

Dec -04

Source: seekingalpha.com

Card image cap

First Look: Insurers, Auto Rules, AI and Fed Jitters

Dec -04

Source: gurufocus.com

Card image cap

Groupe la Francaise Boosts Holdings in Marvell Technology, Inc. $MRVL

Dec -04

Source: defenseworld.net

Card image cap

Today's Market: Dow Rises, Nasdaq Climb Despite Microsoft Sparks Fresh AI Selloff

Dec -04

Source: gurufocus.com

Card image cap

Buy the Spike in Marvell Technology Stock After Q3 Earnings?

Dec -04

Source: zacks.com

Card image cap

Market Today: Fed hopes lift stocks; AWS AI rollout; Prada-Versace deal

Dec -03

Source: gurufocus.com

Card image cap

Beyond NVIDIA: 5 Semiconductor Stocks Set to Dominate 2026

Dec -03

Source: marketbeat.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.00%)

6. Segments

Design, Development and Sale of Integrated Circuits

Expected Growth: 6.0%

The global revenue growth hypothesis is 6.0%, and since 'Design, Development and Sale of Integrated Circuits' is the primary segment, it is reasonable to assign this growth rate to it. The segment is expected to benefit from growing demand for high-performance, low-power semiconductor solutions in various markets, including data centers and consumer electronics, thus aligning with the global growth hypothesis.

7. Detailed Products

Ethernet Controllers

Marvell's Ethernet controllers provide high-speed connectivity solutions for data center, enterprise, and carrier networks.

Storage Controllers

Marvell's storage controllers offer high-performance and low-power solutions for hard disk drives (HDD) and solid-state drives (SSD).

Wireless Connectivity Solutions

Marvell's wireless connectivity solutions provide Wi-Fi, Bluetooth, and Wi-Fi/Bluetooth combo solutions for IoT, automotive, and consumer electronics.

Armada Processors

Marvell's Armada processors are high-performance, low-power system-on-chip (SoC) solutions for networking, storage, and compute applications.

Prestera Switching Solutions

Marvell's Prestera switching solutions provide high-performance, low-latency switching solutions for data center, enterprise, and carrier networks.

Alaska Ethernet PHYs

Marvell's Alaska Ethernet PHYs provide high-speed, low-power Ethernet physical layer (PHY) solutions for data center, enterprise, and carrier networks.

8. Marvell Technology, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Marvell Technology, Inc. faces moderate threat from substitutes due to the availability of alternative products and services in the semiconductor industry.

Bargaining Power Of Customers

Marvell Technology, Inc. has a diverse customer base, which reduces the bargaining power of individual customers, giving the company an upper hand in negotiations.

Bargaining Power Of Suppliers

Marvell Technology, Inc. relies on a few key suppliers for raw materials and components, giving them some bargaining power, but the company's large scale of operations helps to mitigate this risk.

Threat Of New Entrants

The semiconductor industry has high barriers to entry, including significant capital requirements and technological expertise, making it difficult for new entrants to compete with established players like Marvell Technology, Inc.

Intensity Of Rivalry

The semiconductor industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry for Marvell Technology, Inc.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 22.52%
Debt Cost 3.95%
Equity Weight 77.48%
Equity Cost 11.28%
WACC 9.63%
Leverage 29.07%

11. Quality Control: Marvell Technology, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Analog Devices

A-Score: 4.8/10

Value: 1.1

Growth: 4.6

Quality: 7.3

Yield: 4.0

Momentum: 5.0

Volatility: 7.0

1-Year Total Return ->

View Full Report
Stock-Card
GLOBALFOUNDRIES

A-Score: 3.7/10

Value: 5.4

Growth: 5.0

Quality: 4.2

Yield: 0.0

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
AMD

A-Score: 3.6/10

Value: 0.2

Growth: 6.8

Quality: 6.6

Yield: 0.0

Momentum: 5.0

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Intel

A-Score: 3.5/10

Value: 4.1

Growth: 1.2

Quality: 3.2

Yield: 1.0

Momentum: 9.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
ON Semiconductor

A-Score: 3.3/10

Value: 2.8

Growth: 6.9

Quality: 5.7

Yield: 0.0

Momentum: 1.5

Volatility: 3.0

1-Year Total Return ->

View Full Report
Stock-Card
Marvell Technology

A-Score: 3.3/10

Value: 2.7

Growth: 4.3

Quality: 4.2

Yield: 0.0

Momentum: 6.0

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

98.19$

Current Price

98.19$

Potential

-0.00%

Expected Cash-Flows