{"id":5896,"date":"2026-10-07T15:16:57","date_gmt":"2026-10-07T15:16:57","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5896"},"modified":"2026-10-07T15:16:57","modified_gmt":"2026-10-07T15:16:57","slug":"why-is-marvell-technology-falling-despite-raising-revenue-outlook-to-90b","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5896","title":{"rendered":"Why is Marvell Technology falling despite raising revenue outlook to $90B"},"content":{"rendered":"
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Marvell Technology MRVL stock fell 2% on Wednesday even after the chipmaker outlined an ambitious long-term revenue outlook at its Investor Day.<\/p>\n

The broader markets have fallen<\/a> as record-high Treasury yields weighed on stocks.<\/p>\n

Marvell’s revenue outlook prompted TD Cowen to upgrade the stock and raise its price target.<\/p>\n

TD Cowen analyst Sean O’Loughlin upgraded Marvell to \u2018Buy\u2019 from \u2018Hold\u2019 and lifted his price target to $350 from $245. <\/p>\n

The new target implies more than 20% upside from recent levels.<\/p>\n

In a note cited by TheFly, O’Loughlin said Marvell’s growth drivers had shifted towards its strong connectivity business, while concentration risk linked to custom XPU programmes had been largely reduced.<\/p>\n

Marvell targets $90B in fiscal 2031 revenue<\/h2>\n

At its Investor Day on Tuesday, Marvell set a fiscal 2031 revenue target of $70 billion to $90 billion, compared with $8.2 billion in fiscal 2026.<\/p>\n

At the midpoint of the range, management expects about $37.5 billion in revenue from interconnect products and $30 billion from custom products.<\/p>\n

The company also raised its fiscal 2028 revenue outlook to approximately $20 billion, above Wall Street’s $18.2 billion consensus estimate, according to Koyfin.<\/p>\n

Marvell expects custom revenue to exceed $12 billion in fiscal 2029, compared with its previous target of more than $10 billion.<\/p>\n

The company generated about $1.5 billion in custom revenue in fiscal 2026.<\/p>\n

Management said the long-term forecast does not depend on winning a major new customer or securing a major design win.<\/p>\n

Custom AI chip business expands beyond key customers<\/h2>\n

Customer concentration has been a concern for Marvell because custom-chip programmes can depend heavily on a small number of large cloud customers.<\/p>\n

The company has expanded relationships with hyperscalers through work on Amazon’s Trainium and Microsoft’s Maia chips. <\/p>\n

It has also reportedly secured part of Google’s next-generation TPU work.<\/p>\n

Broadcom remains a major competitor in custom AI silicon, with relationships including Google and Meta Platforms. <\/p>\n

Nvidia continues to dominate AI computing through its GPUs, while custom chips provide cloud companies with an alternative for workloads where specialised designs can improve cost or efficiency.<\/p>\n

Marvell’s longer-term strategy also places greater emphasis on data-centre connectivity and networking. <\/p>\n

The company expects these businesses to become increasingly important alongside its custom AI chip operations.<\/p>\n

Analysts raise price targets after Investor Day<\/h2>\n

Several analysts increased their valuations following Marvell’s updated outlook.<\/p>\n

Jefferies raised its price target to $450 from $325, saying the fiscal 2031 forecast places connectivity at the centre of Marvell’s growth story. <\/p>\n

Evercore ISI increased its target to $433 from $275, citing the company’s intellectual property portfolio and flexible business model across merchant, semi-custom and custom solutions.<\/p>\n

Raymond James described the fiscal 2031 outlook as \u201cextraordinary\u201d and said scale-up connectivity and optics could become at least as important to the long-term story as custom compute.<\/p>\n

Morningstar raised its fair value estimate to $360 from $300 after increasing its fiscal 2031 revenue and earnings estimates by roughly 40%. <\/p>\n

The firm acknowledged valuation concerns following the stock’s sharp rise but said the expected growth could make the premium easier to justify.<\/p>\n

Marvell’s latest outlook follows record second-quarter revenue of $2.7 billion, up 37% year over year, while data-centre revenue increased 46%.<\/p>\n

The post Why is Marvell Technology falling despite raising revenue outlook to $90B<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Marvell Technology MRVL stock fell 2% on Wednesday even after the chipmaker outlined an ambitious long-term revenue outlook at its Investor Day.The broader markets have fallen as record-high Treasury yields weighed on stocks.Marvell’s revenue outlook prompted TD Cowen to upgrade the stock and raise its price target.TD Cowen analyst Sean O’Loughlin upgraded Marvell to \u2018Buy\u2019…<\/p>\n","protected":false},"author":1,"featured_media":5897,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5896","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5896","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5896"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5896\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5897"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5896"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5896"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5896"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}