Marvell's 50% Interconnect Growth Forecast Caps a Record Run, Even as Insiders Take Profits

Marvell Technology has turned optical networking into its strongest growth lever, lifting its 2027 interconnect revenue target to 50% from a prior 30% and sending shares to an all-time high. The stock climbed nearly 8% to €156.16, more than doubling since the start of the year and extending a 12-month gain of 159%. Management’s upgraded outlook, combined with a strategic equity stake from rival AMD, has reinforced confidence that Marvell will remain a critical supplier in the AI infrastructure buildout.

The catalyst is a surge in demand for high-speed optical links inside data centers. Traditional electrical interconnects are hitting physical bandwidth limits as AI accelerators require ever-faster data transfer. Marvell’s optical solutions address that bottleneck, and the company’s data center segment has already tripled in size. Analysts at RBC Capital and Bank of America responded by raising their price targets to $200, citing Marvell’s pivotal role in networking AI clusters.

AMD’s involvement adds a layer of validation. The chipmaker purchased roughly $6.5 million worth of Marvell shares in the open market. Although the sum is modest, the move signals that a direct competitor sees strategic value in Marvell’s technology. Separately, Marvell has deepened its own cooperation with Nvidia, committing billions of dollars in custom chips and networking hardware for data centers.

Should investors sell immediately? Or is it worth buying Marvell Technology?

Yet the rally has prompted profit-taking. CFO Willem Meintjes sold 4,000 shares on May 15, netting about $700,000, under a pre-arranged trading plan. He still holds more than 226,000 shares. On a larger scale, TimesSquare Capital Management cut its stake by nearly 38% in the most recent quarter, and overall insider sales totaled roughly $30 million in the same period.

Expectations are high for the upcoming quarterly report, due at the end of May. In the prior quarter, Marvell posted revenue of $2.22 billion, up 22.1% year over year, and earnings per share of $0.80, comfortably beating analyst estimates. For the current fiscal year, the consensus EPS stands at $3.04. With the stock trading at a forward price-to-earnings multiple of 46.4, sustaining growth in the data center segment — particularly amid ongoing supply chain discussions — will be key to hitting further highs.

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Marvell Technology Stock: New Analysis - 19 May

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