Marvell Technology (MRVL) Stock Forecast & Price Target

Marvell Technology has demonstrated strong financial performance, forecasting October quarter revenue of $2.2 billion, which represents a 21% increase year-over-year and is slightly ahead of market expectations. The company's data center segment is projected to exhibit robust growth, with an anticipated increase of over 25% year-over-year in calendar year 2026, supported by an expanding number of design wins in the custom business. Additionally, Marvell's reported revenue for the October quarter of $2.075 billion reflected a 37% year-over-year growth, indicating solid momentum in key areas such as Custom Silicon, Optics, Switching, and Storage.

Marvell Technology is facing significant challenges reflected in its declining gross margins, which are expected to decrease by 70 basis points sequentially, indicating mounting cost pressures within its custom XPU business. In addition, the company's anticipated growth in the custom XPU segment is projected to slow to only 20% by CY26, primarily due to lost market share with significant clients like Amazon and cyclical weakness in key markets such as Storage and Networking. Furthermore, even with expectations of growth in future financial years, gross margins are forecasted to decline year-over-year, suggesting an unfavorable trend in profitability as Custom Silicon gains a larger share of the product mix.