Goldman Sachs Raises Marvell Price Target to $90 on Strong Data Center Outlook
December 6, 2025
Marvell Technology, a key semiconductor supplier for cloud and artificial intelligence infrastructure, has received a significant vote of confidence from Wall Street, underscoring the critical role its components play in powering the ongoing data center expansion.
This week, investment bank Goldman Sachs increased its price target on Marvell's stock (NASDAQ: MRVL) to $90 from $80, while maintaining a "Neutral" rating. The adjustment follows the company's impressive third-quarter fiscal 2026 earnings report, which showcased accelerating demand for its data center solutions.
The chipmaker reported record quarterly revenue of $2.075 billion, surpassing its own guidance. Company leadership attributed this performance to robust demand within the data center segment. "We are guiding for robust growth in the fourth quarter and are on track for a strong finish to the fiscal year, with full-year revenue growth forecasted to exceed 40%," stated Matt Murphy, Marvell’s Chairman and CEO. He further noted that demand is accelerating, leading to a raised growth forecast for data center revenue next year.
Goldman Sachs cited improved visibility into Marvell's data center momentum, particularly for its custom compute chips designed for specific AI workloads. The firm projects the company's data center revenue will grow 40% year-over-year in calendar year 2027, with revenue from custom compute solutions expected to double in the same period. The recent acquisition of Celestial AI was also highlighted as a strategic move to broaden Marvell's portfolio in this high-growth market.
The revised price target and optimistic forecasts signal strong analyst belief in Marvell's positioning to capitalize on the multi-year investment cycle in AI and cloud data centers. As enterprises and hyperscalers continue to ramp up spending on AI-optimized infrastructure, demand for specialized semiconductors like those Marvell provides is expected to remain elevated.
Source: yahoo
