CFRA analyst Angelo Zino has increased Marvell Technology's (MRVL, Financial) price target to $130 from $122 and retreated a "Strong Buy" rating. This is an optimistic revision of the semiconductor firm buoyed by solid demand in the custom silicon chip market. Marvell's stock price has soared by as much as 86 per cent year to date as it enjoys a good momentum.
This is an upward adjustment using a 35x price-to-earnings (P/E) ratio for CFRA's 2026 earnings per share (EPS) estimate. The fiscal years 2025, 2026, and 2027 EPS forecast was also raised by $1.63, $2.76, and $3.72, respectively. Marvell's expected scaling in custom silicon chip production to hyperscalers ramping in capacity during 2025 and 2027 is a recurring theme of these revisions.
Analysts forecast Marvell's return to profitability this year and predict fiscal 2025 EPS of $1.57. Custom silicon chip's total addressable market (TAM) is expected to grow at a 29% compounded annual growth rate (CAGR) to $75 billion in 2028 from $21 billion in 2023.
We forecast Marvell to capture 20 per cent of the $40 billion accelerated custom compute market with ASICs, which could contribute $8 billion of revenue.
Marvell has solid financial health metrics and a market capitalization of nearly $97 billion, making it well-placed for sustained growth. This will further corroborate analysts' positive outlook on the semiconductor company. That's in line with larger semiconductor industry expectations of a period of growth for GPU sales that will eventually taper off for custom silicon chips far outweighing GPUs over the next 12 months.
