Is Marvell Technology, Inc. (MRVL) A Good Stock To Buy Now?

Is MRVL a good stock to buy? We came across a bullish thesis on Marvell Technology, Inc. on Atlas.ML’s Substack. In this article, we will summarize the bulls’ thesis on MRVL. Marvell Technology, Inc.’s share was trading at $198.70 as of May 27^th. MRVL’s trailing and forward P/E were 64.72 and 51.81 respectively according to Yahoo Finance.

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Marvell Technology, Inc., together with its subsidiaries, provides data infrastructure semiconductor solutions and spanning the data center core to network edge in the United States and internationally. MRVL delivered a strong start to fiscal 2027, reinforcing its position as one of the primary beneficiaries of the accelerating buildout of AI infrastructure. The company reported record first-quarter revenue of $2.42 billion, up 28% year-over-year, and adjusted EPS of $0.80, both ahead of expectations.

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Growth was overwhelmingly driven by Marvell’s Data Center segment, which generated a record $1.83 billion in revenue, accounting for 76% of total sales and growing 27% year-over-year as demand for custom AI silicon, high-speed optical connectivity, and networking solutions continued to strengthen. While GAAP profitability was temporarily pressured by acquisition-related accounting charges tied to the purchases of Celestial AI and XConn Technologies, underlying operating performance remained robust, with non-GAAP operating margins reaching 35%.

Marvell also continued to strengthen its competitive position through strategic acquisitions and an expanded partnership with Nvidia spanning optics, NVLink Fusion, and AI-RAN technologies. Management highlighted that inventory corrections across communications and enterprise markets have largely normalized, allowing those businesses to return to underlying demand trends. Looking ahead, the company guided for second-quarter revenue of approximately $2.7 billion, representing 35% year-over-year growth, and expects revenue growth to accelerate in every quarter of fiscal 2027.

Management raised its full-year fiscal 2027 revenue outlook to roughly $11.5 billion, supported by exceptional demand for AI solutions and interconnect products. The most compelling aspect of the thesis is the long-term opportunity, as Marvell increased its fiscal 2028 revenue target by $1.5 billion to approximately $16.5 billion, implying about 45% growth and highlighting substantial upside potential as AI cluster deployments, custom silicon programs, and next-generation 1.6T optical technologies continue scaling globally.

Previously, we covered a bullish thesis on Marvell Technology, Inc. (MRVL) by Simple Investing in January 2025, which highlighted the company’s expanding custom silicon business, hyperscaler partnerships, and electro-optics portfolio benefiting from AI and cloud infrastructure growth. MRVL’s stock price has appreciated by approximately 72.48% since our coverage. Atlas.ML shares a similar view but emphasizes Marvell’s accelerating AI momentum, record data center revenue, upgraded revenue outlook, and growing optical interconnect opportunity.

Marvell Technology, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 79 hedge fund portfolios held MRVL at the end of the first quarter which was 85 in the previous quarter. While we acknowledge the risk and potential of MRVL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRVL and that has 10,000% upside potential, check out our report about this cheapest AI stock.

Disclosure: None.