Marvell’s Data Center Revenue Soars 21%—AI Stock Set for 50% Gain by 2026
Marvell Technology is riding strong demand for AI infrastructure. Rapid adoption of artificial intelligence is driving heavy spending on data center hardware. The company supplies interconnects, Ethernet switches, and custom chips used by hyperscalers.
Recent financial performance
For fiscal 2026, which ended in January, Marvell reported revenue of $8.2 billion. That represented a 42% increase from the prior year.
Data center sales accounted for roughly three-quarters of total revenue. Adjusted earnings per share rose 81% to $2.84 for the full year.
Data center momentum
Marvell’s data center revenue grew 21% year over year last quarter. Management now forecasts that growth accelerating to about 40% this year.
That ramp is driven by demand for high-speed interconnects, custom silicon, and Ethernet switches. Hyperscalers spent an estimated $410 billion in capital expenditures last year, and capex is expected to rise again in 2026.
Market position and products
Marvell sells components that keep large data centers connected and performant. Its portfolio includes networking switches, interconnect technology, and bespoke chips for AI workloads.
These products typically carry higher margins, which helped lift the company’s gross-profit performance last fiscal year.
Valuation and upside scenarios
The stock trades at roughly 24 times this year’s consensus earnings estimate. Analysts expect the forward multiple to fall to about 17 on fiscal 2028 projections.
Consensus earnings for fiscal 2028 stand near $5.44 per share. Applying a 24x P/E to that estimate implies a share price around $130, roughly 41% above current levels. Returning to a three-year average forward P/E of 38 would imply a price near $206, or about 125% upside.
| Current Price | $87.84 |
| Today’s Change | -7.42% (-$7.04) |
| Market Cap | $77B |
| Day’s Range | $86.62 – $96.50 |
| 52‑Week Range | $47.09 – $102.77 |
| Volume | 115K |
| Avg Vol | 17M |
| Gross Margin | 50.10% |
| Dividend Yield | 0.27% |
Risks and outlook
A slowdown in hyperscaler spending could weigh on Marvell’s results. Energy constraints or broader economic weakness could reduce data center capex.
Still, if AI infrastructure budgets continue to expand, Marvell could capture further growth. Some investors view this AI stock as capable of about a 50% gain by 2026, given current forecasts and multiples.
Filmogaz.com view: Marvell looks well positioned in a fast-growing market. The company blends strong recent results with an attractive valuation. Investors should weigh the upside scenarios against demand and macro risks.
