Marvell (MRVL) Stock: A Significant AI Infrastructure Contender Excluding Nvidia

TLDR

• Marvell announced record fiscal 2026 revenue of $8.195 billion, marking a 42% increase year-over-year.
• Fourth-quarter revenue reached a new high of $2.219 billion, propelled by a 46% surge in data center sales.
• Reports indicate Google is in discussions with Marvell to co-develop two AI-centric chips, including a novel TPU-related design.
• Marvell divested its automotive ethernet division to Infineon for $2.5 billion and acquired Celestial AI and XConn to bolster its AI infrastructure capabilities.
• MRVL’s stock is trading at approximately 32.7 times earnings, with a market capitalization close to $80.8 billion; analysts maintain a consensus of Moderate Buy with an average price target of roughly $121.06.

(SeaPRwire) –   Marvell Technology has been steadily advancing within the AI sector, operating largely out of the spotlight that typically shines on Nvidia. The company has achieved significant success in custom chips, optical networking, and data-center connectivity, and the market is now beginning to recognize these accomplishments.

Marvell Technology, Inc., MRVL

Marvell Technology, Inc. reported record revenue for fiscal year 2026, totaling $8.195 billion, a 42% increase compared to the previous year. Revenue for the fourth quarter also set a record at $2.219 billion. The company’s non-GAAP diluted earnings per share for the full year was $2.84.

The strong performance was primarily driven by demand in the data center segment. Marvell noted that data center revenue grew by 46% in fiscal year 2026, with communications and other markets contributing an additional 31%. This sustained growth suggests Marvell’s increasing integration into AI infrastructure over time, rather than a temporary surge.

Looking ahead to the first quarter of fiscal year 2027, Marvell has projected revenue of approximately $2.4 billion, indicating that its growth momentum is expected to continue.

Custom Silicon Presents a Significant Opportunity

The area of custom chips is particularly noteworthy. Major cloud providers are increasingly opting to design their own AI hardware instead of relying exclusively on standard processors. Marvell is positioning itself as a crucial partner in this evolving landscape.

In March, Reuters reported that Marvell’s optimistic multi-year forecast was attributed to robust demand for custom AI chips from major cloud clients. Subsequently, on April 20, 2026, Reuters published a report stating that Alphabet’s Google is in discussions with Marvell to develop two AI-focused chips, including a memory processing unit and a new design related to their Tensor Processing Unit (TPU).

If these discussions lead to a confirmed partnership, it would represent a substantial achievement for Marvell. This development aligns with a broader trend among hyperscalers to diversify their silicon strategies, with Marvell consistently emerging as a key player in these initiatives.

MarketBeat data indicates that the company currently holds a Moderate Buy consensus, with analysts issuing 2 Strong Buy, 27 Buy, and 8 Hold ratings.

Strategic Portfolio Adjustments

Beyond its growth, Marvell has also been actively refining its business focus. The company sold its automotive ethernet business to Infineon for $2.5 billion in cash, a strategic move that streamlined its operations and sharpened its concentration on core data infrastructure.

Following the close of the fiscal year, Marvell finalized the acquisitions of Celestial AI and XConn. Company leadership has stated that both acquisitions are expected to accelerate its strategy for next-generation AI and cloud data-center interconnect solutions.

This emphasis on connectivity is critical. As AI clusters expand, the efficient transfer of data between processors, racks, and memory becomes as vital as the processing chips themselves. Marvell aims to establish a strong presence in this crucial layer of the infrastructure.

Marvell (MRVL) is currently trading at approximately 32.7 times its earnings, with a market capitalization nearing $80.8 billion.

The average 12-month analyst price target stands at around $121.06. Based on recent trading activity, this suggests that the stock has already surpassed the valuation anticipated by many analyst models.

The most recent significant development remains the Reuters report from April 20, 2026, which highlights ongoing discussions with Google for chip development. This potential catalyst has not yet been fully reflected in analyst price targets.