Marvell Technology Sells Automotive Ethernet Business for $2.5 Billion to Boost AI Chip Investments
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Source: Fool
- Strong Financial Performance: Marvell achieved a 37% year-over-year revenue growth in Q3 of fiscal 2026, indicating robust potential and demand in the AI sector despite stock price declines.
- Strategic Acquisition: By selling its automotive Ethernet business for $2.5 billion in cash, Marvell quickly reallocates funds to AI chip development, which is expected to enhance market share and competitiveness.
- Optimistic Market Outlook: CEO Matt Murphy forecasts accelerated demand for AI products, predicting higher revenue growth in fiscal 2027, especially following the acquisition of Celestial AI.
- Profit Margin Improvement Potential: With a current net profit margin of around 10%, Marvell is positioned to further enhance profitability as it expands its AI business and divests from non-AI segments, driving long-term performance growth.
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: 80.380
Low
70.00
Averages
92.66
High
122.00
Current: 80.380
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.
