Marvell Technology (MRVL) is set to announce its fiscal 2026 second quarter results on Thursday, August 28th. There’s a lot of optimism on Wall Street regarding MRVL’s stock, mostly due to the heightened demand for the company’s custom AI chips that are essential for data centers.
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Analysts are forecasting Marvell will achieve earnings per share (EPS) of $0.67 for the second quarter, marking a significant growth of 123% from the previous year. Revenue is expected to rise by 58%, reaching about $20.1 billion.
However, despite the positive outlook for AI-related demand, Marvell’s shares have dropped roughly 34% since the beginning of the year, primarily affected by uncertainties surrounding tariffs and ongoing US-China trade tensions.
Analysts’ Perspectives Before Q2 Results
Before the fiscal 2026 Q2 earnings report, Susquehanna’s analyst Christopher Rolland reiterated his buy ratings for Marvell, with a price target set at $90. Many analysts anticipate the company will post results in line with expectations. Rolland highlighted strong AI demand from hyperscalers supporting capital expenditures in their data center business.
Yet, he cautioned about potential short-term pressures on margins as the custom silicon offerings might impact Marvell’s overall margins.
Oppenheimer analyst Rick Schafer also maintained a buy rating on MRVL with a price target of $95. Schafer is optimistic about the upcoming third-quarter results, driven by AI trends. He added that Marvell is likely to exceed its management’s AI revenue target for 2025 by $2.5 billion.
In general, Schafer sees Marvell positioned for growth, fueled by the ongoing expansion in AI structures for data centers, which is driving demand for its ASIC chips and network products. Interestingly, analysts believe that existing uncertainties regarding AI ASIC outlook might present new opportunities.
Cautious Sentiments from AI Analysts Regarding MRVL
Moreover, the Tipranks AI Stock Analyst has assigned a neutral valuation to MRVL, with a target of $78, indicating a potential upside of 6.9%. Their analysis points to robust insights from revenue calls and the company’s focus on AI and custom silicon. However, technical analysis shows some short-term bearish momentum and concerns impacting overall ratings.
Expectations from Options Traders Ahead of Revenue Announcement
According to TipRanks’ options tool, which helps decipher traders’ expectations immediately after earnings reports, the predicted revenue movement for Marvell stock is computed using the Money at Straddle method. Currently, traders anticipate a movement of approximately 10.4% in either direction following the Q2 FY26 results.
Is MRVL a Worthwhile Purchase?
With 27 buy recommendations and six holds, there’s a strong consensus among Wall Street analysts that Marvell Technology stocks are a good buy. The average target for MRVL stock is set at $91.20, suggesting a potential upside of about 25% from current market levels.
