Cantor Fitzgerald Trims Marvell (MRVL) PT to $100, Cites Neutral Stance Amid AI Expansion

Core Insights - Marvell Technology Inc. is identified as a strong investment opportunity for the next five years, despite a recent price target reduction by Cantor Fitzgerald analyst C.J. Muse from $110 to $100, maintaining a Neutral rating on the shares [1][3] Financial Performance - In FQ3 2026, Marvell reported record revenue of $2.075 billion, marking a 37% year-over-year increase, driven by its Data Center segment generating $1.52 billion (up 38%) and Communications business bringing in $557 million (up 34%) [2] - Non-GAAP EPS for the quarter surged 77% annually to $0.76, exceeding sequential expectations by 13% [2] - For FQ4, Marvell targets a revenue midpoint of $2.2 billion, representing a 21% year-over-year growth, with Non-GAAP EPS expected to range between $0.74 and $0.84 [2] Strategic Moves - A significant highlight for Marvell was the acquisition of Celestial AI, aimed at enhancing its optical interconnect and photonic fabric capabilities [3] - The acquisition has already secured a design win with a leading Tier 1 hyperscaler for Celestial AI's photonic fabric chiplets, although meaningful revenue contribution is not expected until H2 FY2028 [3] - Management projects that the optical interconnect technology could eventually reach revenue milestones of $500 million to $1 billion as it becomes critical for future AI scaling [3] Industry Context - The Philadelphia Semiconductor Index/SOX is projected to lead the broader market through 2026, following a strong performance in 2025 where it outperformed the S&P 500 by approximately 30 points [1]