JPMorgan: Marvell CY28 EPS seen at $11, 14% above consensus

On August 24, JPMorgan noted in a research report that Marvell Technology's CY2028 EPS is expected to reach $11, 14% above the current market consensus of $9.64. JPMorgan reiterated an Overweight rating and a $240 price target, citing Google's custom chip collaboration, AWS Trainium 3 ramp, and Microsoft Maia XPU order book strength, with all three major cloud vendors appearing on the customer list, while the market has yet to fully price in its full-stack capabilities spanning optical DSPs, XPU ASICs, and switch chips.

JPMorgan expects Marvell's fiscal Q2 2027 (July quarter) results to meet or slightly beat expectations, with strong demand for optical DSPs in 1.6T/800G and continued customer adoption of Teralynx 10 switches. For fiscal Q3 2027 (October quarter), revenue guidance is expected to approach $3.1 billion, above the market consensus of $3.028 billion, with data center segment growing 16%-18% quarter-over-quarter. It also stated that the CY2027 data center revenue growth guidance of 55% is likely to be revised upward. Key risks include AI capex, ASIC competition, and customer concentration.

[TechFlow]