Marvell Technology (MRVL) shares have surged 363% over the past year, outpacing the Zacks Electronics – Semiconductors industry and Zacks Computer and Technology sector, which saw returns of 129.5% and 51.5%, respectively. In the first quarter of fiscal 2027, Marvell reported record revenues of $2.418 billion, with its data center segment contributing 76% to total revenues. The company anticipates interconnect revenues will grow over 70% year-over-year in fiscal 2027, driven by the increasing demand for AI infrastructure.
Despite strong growth projections, MRVL faces significant competition from firms such as Broadcom, AMD, and Astera Labs, particularly in custom silicon solutions. In fiscal 2026, 74% of MRVL’s total revenues were derived from data centers, with over 90% tied to AI and cloud hyperscaler demand. Currently, MRVL trades at a price-to-earnings (P/E) ratio of 89.16, significantly above the industry average of 41.13.
Given its robust growth potential but competitive challenges, MRVL is currently ranked as a Zacks Rank #3 (Hold), suggesting investors should maintain their positions for now.
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