Marvell Technology (MRVL) stock surged over 11% in premarket trading on Friday, March 6, 2026, following the release of its stronger-than-expected fourth-quarter fiscal 2026 results and bullish guidance. The chipmaker reported adjusted earnings per share (EPS) of $0.80 on revenue of $2.22 billion, surpassing Wall Street estimates of $0.79 EPS and $2.21 billion in revenue. This capped off a fiscal year where revenue jumped 42% year-over-year to $8.195 billion.
The data center segment was the primary growth engine, with revenue hitting $1.65 billion, a 21% increase from the same quarter a year ago and beating the analyst estimate of $1.63 billion. CEO Matt Murphy stated the company expects year-over-year revenue growth to accelerate each quarter in fiscal 2027, citing record-pace bookings and continued strength in data center demand.
Analysts were quick to react to the positive results. Bank of America's Vivek Arya upgraded MRVL from Hold to Buy, raising his price target to $110. Benchmark Research's Cody Acree raised his rating to Buy from Neutral with a $130 target price, noting that Marvell's opportunity set across custom AI chips (ASICs), interconnects, and photonics remains "robust." Susquehanna's Christopher Rolland maintained his Positive rating and $100 target.
The company's guidance for the first quarter of fiscal 2027 also came in well above expectations, forecasting revenue of $2.4 billion and EPS of $0.79. Wall Street had anticipated $2.28 billion in revenue and $0.74 EPS. This optimism is fueled by massive capital expenditure plans from major hyperscalers—Amazon, Microsoft, Alphabet, and Meta—who are collectively expected to spend around $645–$650 billion in 2026, much of it on AI data center infrastructure.
While Marvell's custom AI chip business for clients like Amazon (Trainium chips) garners attention, the company highlighted that networking and interconnect products are also key growth drivers. Marvell expects interconnect revenue to grow more than 50% in fiscal 2027, bolstered by its recent acquisitions of optical-networking firm Celestial AI for $3.25 billion and interconnect technology company XConn for $540 million.
The strong report helped Marvell's stock recoup some of its recent losses; it had fallen 13% over the past 12 months and 7.5% year-to-date before the earnings announcement. The results also eased some investor concerns about potential market share loss to competitors like Alchip in its Amazon business.
