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Marvell Rallies as 1.6T Interconnect Wins Lift Outlook and Quell Hyperscaler Fears

Fresh bookings for next‑generation DCI hardware point to deepening ties with top cloud providers.

Overview

  • Shares closed up 18.35% at $89.57 following the March 5 earnings release.
  • Marvell guided Q1 FY27 revenue to about $2.4 billion and outlined a path to roughly $15 billion in FY28 sales.
  • Data center revenue hit a record $1.65 billion, supported by accelerating 1.6T bookings and multiple design wins.
  • Management expects to supply DCI modules to all five major U.S. hyperscalers this year, anchored by the new COLORZ 1600 1.6 Tbps ZR/ZR+ pluggable and 2nm coherent DSPs with MACsec.
  • Goldman Sachs raised its price target to $100 with a neutral rating and flagged expected gross‑margin pressure from a heavier custom‑silicon mix, including estimated quarter‑over‑quarter erosion through 2027.