[Citi Raises Marvell Revenue Guidance, Optimistic About Its Transition to Custom Computing Platforms]
According to TrendForce Research, Citi stated in a research report on August 28 that Marvell has raised its revenue guidance for two consecutive quarters. FY2027 revenue guidance has been increased from $11.5 billion to approximately $12 billion, and FY2028 from $16.5 billion to approximately $18 billion. Marvell's Q2 revenue was $2.74 billion, with non-GAAP earnings per share of $0.94. The midpoint of Q3 revenue guidance is $3.15 billion, higher than the market consensus of $3 billion. Citi maintains a Buy rating with a target price of $275.
Citi believes Marvell is evolving into a custom computing platform company, with a multi-category agreement signed with Google in July. Citi estimates that AI data center DSP sales for FY2027 and FY2028 will reach $5.3 billion and $7.7 billion, respectively.
