This analyst just raised his price target on Marvell Technology

Marvell Technology (Marvell Technology Stock Quote, Chart, News, Analysts, Financials NASDAQ:MRVL) reported largely in-line fiscal third-quarter results and offered longer-term guidance pointing to a higher custom XPU revenue run-rate as a second Tier-1 hyperscale customer begins to ramp.

The company also acquired privately held Celestial AI, adding optical scale-up connectivity capabilities to its AI rack-system portfolio.

In a Dec. 3 report, Roth Capital Markets analyst Suji Desilva raised his price target to US $135.00 from $105.00 and reiterated a “Buy” rating.

Santa Clara–based Marvell develops mixed-signal and digital semiconductors used across data center, carrier, enterprise networking and consumer markets. The company generated US$5.5-billion in fiscal 2024 revenue and holds more than 10,000 patents.

Marvell posted fiscal Q3 2026 revenue of US$2.075-billion, up 3.4% sequentially and 37% year-over-year, essentially matching consensus at US$2.06-billion. Excluding mid-quarter divestiture of its automotive business, growth was 6% q/q and 41% y/y. Data-center revenue rose 1.8% q/q and 38% y/y, supported by XPU and optical shipments, while carrier infrastructure (+29% q/q) and enterprise networking (+23% q/q) also delivered strong sequential gains. Gross margin held steady at 59.7% and EPS of US$0.76 beat expectations by two cents.

For Q4, Marvell guided revenue to US$2.2-billion ±5 per cent, in line with the Street.

Desilva highlighted management’s outlook for custom XPU revenue to roughly double by fiscal 2028 (CY27) as a second hyperscale program reaches commercial scale. Early contributions are expected in FY27, supporting ~20% y/y custom XPU growth. Marvell has more than 18 custom XPU and 15 XPU-attach design wins slated to ramp over the next several quarters.

The company also announced the US$3.5-billion acquisition of Celestial AI, including US$1-billion in upfront cash without adding debt. Celestial is pre-revenue today, but Desilva expects it to contribute roughly US$500-million in fiscal 2028 and US$1-billion in fiscal 2029, anchored by wins with Marvell’s lead hyperscale customer.

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