Marvell Technology reported strong results for the fourth quarter of fiscal 2026, with rapid growth of artificial intelligence infrastructure driving much of the company’s performance. The chipmaker released its earnings on March 5, 2026, highlighting a sharp rise in demand from data center customers.
Revenue from Marvell’s data center segment reached a record $1.36 billion during the quarter. The figure marked a 23.5% increase from the previous quarter and nearly doubled compared with the same period a year earlier. The growth was largely driven by demand for custom AI silicon, high-performance networking chips, and electro-optics products used in large-scale cloud computing systems.
Strategic Partnerships and Hyperscale Demand
Company executives said demand from hyperscale cloud providers remains strong. Marvell also pointed to the expanded multi-year agreements with major customers, including Amazon Web Services, which continues to strengthen its position in the growing AI infrastructure market.
Marvell Technology strengthened its push into AI infrastructure with a major acquisition announced on December 2, 2025. The company agreed to acquire Celestial AI for up to $5.5 billion, with the final value tied to future revenue milestones.
Innovation in Optical Interconnect Technology
Celestial AI is known for its photonic fabric optical interconnect technology, which aims to improve how chips communicate inside large computing systems. As AI workloads continue to grow, optical connections are becoming increasingly important because they can handle higher data speeds and greater efficiency compared with traditional copper-based systems.
The deal follows Marvell’s earlier decisions to sell its Automotive Ethernet business for $2.5 billion as it shifts more resources toward AI-driven opportunities. Optical interconnect products already generate about half of the company’s data center revenue. Investors reacted positively to the news, sending MRVL shares up about 13% in extended trading.
Wall Street Analysts Adjust Price Targets
Analysts have grown more optimistic about the outlook of Marvell Technology as demand for AI data center infrastructure continues to expand. Several investment firms have recently raised their price targets, pointing to the company’s growing role in supplying chips and networking technology used in large cloud computing systems.
Evercore ISI increased its 12- month target for MRVL shares to $156 from $122, citing multiple upcoming data center product cycles and stronger exposure to AI infrastructure than many investors currently recognize. B. Riley Securities also lifted its target to $130 from $100, highlighting the company’s guidance for continued growth throughout 2026 and 2027.
Meanwhile, Piper Sandler raised its target to $133 from $85, pointing to strong demand for cloud and custom silicon products. Melius Research upgraded the stock to Buy with a $135 target.
Overall, Wall Street’s average one-year price target now stands around $118.40, with some forecasts reaching as high as $163.80.
Future Projections and Market Momentum
Marvell Technology continues to project strong long-term growth as demand for AI infrastructure expands. Company estimates suggest data center revenue could grow by about 45% in fiscal 2026, followed by 25% growth in 2027 and another 40% increase in 2028. Much of this momentum is expected to come from deeper partnerships with hyperscale cloud providers and the rollout of new networking technologies.
One key development is the ramp-up of Marvell’s 1.6T PAM DSP technology, which helps improve bandwidth efficiency in large AI computing clusters. The technology is becoming increasingly important as data centers handle heavier AI workloads.
