Marvell Sells Automotive Business for $2.5B, Boosts AI Chip Market Share
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: NASDAQ.COM
- Significant Revenue Growth: Marvell achieved a 51% year-over-year revenue increase for the nine months ending November 1, 2025, despite a nearly 30% drop in stock price, indicating strong performance and market potential in the AI sector.
- Strategic Divestiture: By selling its automotive Ethernet business for $2.5 billion in cash, Marvell quickly reallocates funds towards AI chip development and market expansion, which is expected to enhance its market share in AI data center infrastructure.
- Financial Health: In the third quarter of fiscal year 2026, Marvell reported a 37% year-over-year revenue growth and maintained a current ratio above 2, demonstrating financial stability that provides a solid foundation for future investments.
- Optimistic Future Outlook: Chairman and CEO Matt Murphy forecasts accelerated revenue growth in fiscal year 2027 following the integration of Celestial AI, which is expected to further enhance profit margins and achieve long-term performance gains.
Analyst Views on MRVL
Wall Street analysts forecast MRVL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for MRVL is 92.66 USD with a low forecast of 70.00 USD and a high forecast of 122.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
31 Analyst Rating
23 Buy
8 Hold
0 Sell
Moderate Buy
Current: 81.210
Low
70.00
Averages
92.66
High
122.00
Current: 81.210
Low
70.00
Averages
92.66
High
122.00
About MRVL
Marvell Technology, Inc., together with its subsidiaries, is a supplier of data infrastructure semiconductor solutions, spanning the data center core to network edge. The Company is engaged in the design, development, and sale of integrated circuits. Its product solutions serve various end markets: data center, enterprise networking, carrier infrastructure, consumer, and industrial. Its product offerings include CXL, Data Processing Units, Security Solutions, Coherent DSPs, Coherent-lite DSPs, Data Center Switches, DCI Optical Modules, Enterprise Switches, Ethernet Controllers, Ethernet PHYs, PCIe Retimers, Linear Drivers, PAM DSPs, Transimpedance Amplifiers, Fiber Channel, HDD, Storage Accelerators, and SSD Controllers. The Company develops semiconductor solutions tailored to individual customer specifications that deliver system-level differentiation for artificial intelligence, data center, compute, networking, carrier, storage, aerospace, and defense applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
