Marvell Technology(US:MRVL) Yahoo Finance·2025-11-25 16:48Core Viewpoint - Marvell Technology, Inc. is positioned favorably for AI-driven demand and advanced packaging trends, with a Strong Buy rating and a price target of $121.00 from Raymond James [1]. Group 1: Market Position and Valuation - Analysts recognize skepticism regarding Marvell as a secondary custom silicon supplier but believe it has strong fundamentals due to its application-specific integrated circuit business and optics segment [2]. - Marvell's shares have historically traded at a P/E ratio of 25–30×, with a current estimate of 26× applied to a projected EPS of $4.67 for FY28/CY27, supporting the price target of $121 [2]. - The firm's model anticipates a decline in content share to 10% at Amazon due to shifts in IP/design to Alchip and Amazon's internal design team [2]. Group 2: Growth Projections - The model predicts Trainium/Inferencia chip shipments of 1.5 million in CY25, increasing to 2 million in CY26 and 2.8 million in CY27 [2]. - A similar 10% content ratio is expected for Microsoft's Maia, with production ramping from approximately 75K in CY25 to 620K chips in CY27 [3]. - Custom compute sales are projected to reach $1.4 billion in CY26 (a 6% decline year-over-year) and $2.2 billion in CY27 (a 50% increase year-over-year) [3]. Group 3: Optics Segment Growth - The optics segment is forecasted to grow to $4.4 billion in CY26 and $5.6 billion in CY27, reflecting growth rates of 40% and 26%, respectively [3]. - Marvell is well-positioned to benefit from advanced packaging becoming the market standard, particularly with chiplets and extensive interconnects [4].