Marvell's Rally Extends: Data Centers and AMZN Chips Boost Shares

Key Points

• Marvell Technology has staged a huge recovery over the past three months, appreciating by well over 50%.
• The company's latest earnings, data center forecasts, and color on its Amazon relationship pleased markets and analysts alike.
• With shares near $100, does Marvell still represent a compelling opportunity for investors?

Shares of Marvell Technology NASDAQ: MRVL tanked 19% after the company reported Q2 earnings in late August. Since then, the semiconductor stock has exacted its revenge on bearish investors, surging nearly 60%. Marvell capped off this gain with its latest earnings report, as shares climbed an additional 8% on Dec. 3.

Below, we’ll dissect Marvell’s Q3 fiscal year 2026 (FY2026) earnings release to gain an updated perspective on the stock. Please note that Marvell's fiscal reporting period is one year ahead of the calendar year.

Here’s a closer look at what Marvell’s earnings reveal—and whether this semiconductor stock has room to climb further.

Marvell Gains on Data Center Growth Forecasts

In its latest quarterly earnings, Marvell reported sales of $2.07 billion, or a growth rate of 37%. This slightly beat Wall Street forecasts, which projected sales of $2.06 billion. The company's adjusted earnings per share (EPS) grew to 76 cents, an increase of 77%, which surpassed estimates of 74 cents. 

For the next quarter, the company guided for 21% revenue growth and 32% EPS growth at the midpoint—again, modestly beating analyst expectations.

However, the real driver of Marvell’s post-earnings rally was its long-term data center outlook. The company expects data center growth of 25% in FY2027 and 40% in FY2028. 

This FY2027 forecast is significantly above the 18% forecast it outlined in September, as expectations around hyperscaler capital expenditure for next year have risen substantially. 

Marvell and Trainium3: Amazon Custom Chip Business Stabilizes

Concerns surrounding Marvell’s relationship with its largest custom-chip buyer, Amazon.com NASDAQ: AMZN, have pressured shares in 2025. Historically a co-developer of Amazon’s Trainium processors, Marvell faced uncertainty as Amazon advanced to its next-generation Trainium3 chips (often referred to as XPU's).

In its earnings call, Marvell’s CEO addressed these concerns directly, saying, “Next year's custom revenue forecast comprehends a transition to a next-generation XPU at a large customer, and I would note that we already have purchase orders for the entirety of next fiscal year's current forecast for this next-generation program."

Marvell is stating that its custom-chip forecast for FY2027 already includes orders for Trainum3, essentially securing that revenue for FY2027. While it cannot specifically name Amazon due to customer confidentiality, Marvell’s history strongly suggests that the quote refers to the company. This is further supported by comments made by JPMorgan Chase & Co. analyst Harlan Sur during the earnings call.

Overall, the earnings transcript provides strong evidence of Marvell’s deep involvement in Trainium3. This supports the notion that the firm will participate in future custom chip development for Amazon.

Marvell's Recovery: In Full Swing, With Room for Upside

The reaction to Marvell’s earnings from Wall Street analysts was clearly positive. On Dec. 3, MarketBeat tracked several analysts who raised their Marvell price targets, and none who lowered them.

On average, these analysts increased their Marvell price targets by 20%, substantially more than the stock’s 8% gain. This indicates that analysts were even more pleased with Marvell’s earnings than the overall market.

The consensus price target on Marvell is $111, which implies approximately 11% upside in shares. Price targets updated after the company’s earnings release paint an even more optimistic picture. Among them, the average target sits at $120, suggesting shares could rise by 20%.

Marvell is not the value it was three months ago. However, even after a strong recovery, the stock’s valuation does not look unreasonable. Its forward price-to-earnings (P/E) ratio sits at 30x. That’s moderately below its average forward P/E of around 33x over the past three years. It is also just slightly above the 28x forward P/E of the S&P 500 technology sector.

Looking ahead, sustained execution in high-growth segments like data centers and custom chips will be key to maintaining momentum. If those trends continue, Marvell stock may still offer attractive upside—though valuation risks could return if future earnings or guidance disappoint.