Marvell Technology(US:MRVL) Huajing Securities·2025-07-03 10:09Investment Rating - The report maintains a "Buy" rating for Marvell Technology Group (MRVL US) with a target price of US$110.42, indicating a potential upside of +43% from the current price of US$77.16 [1][8]. Core Insights - Marvell is expected to benefit significantly from the growth in capital expenditures by major U.S. cloud service providers, with projected spending increasing from US$200 billion in 2024 to over US$300 billion in 2025 [3]. - The company has made substantial investments in advanced process and packaging technologies, achieving mass production of 3nm and 5nm processes, and is currently testing 2nm chips [4]. - Marvell has secured 18 chip projects that are in various stages of development and production, with some expected to contribute to revenue in the fiscal year 2027 [3]. Financial Summary - Projected revenue growth shows an increase from US$5,508 million in 2024 to US$11,623 million by 2028, reflecting a strong upward trend [7]. - Earnings per share (EPS) are expected to rise from US$1.54 in 2024 to US$4.69 in 2028, indicating improved profitability [7]. - The price-to-earnings (P/E) ratio is projected to decrease from 34.5 in 2024 to 16.4 by 2028, suggesting a more attractive valuation over time [7].