Marvell Wins Fresh Buy Calls After Closing XConn as AI Data-Center Growth Stays Strong
Analysts expect the completed XConn deal to broaden Marvell’s AI interconnect stack with limited near-term earnings impact.
Overview
- Stifel’s Tore Svanberg reiterated a Buy rating with a $114 price target on Feb. 11 and updated estimates following the XConn acquisition.
- Marvell said it closed its purchase of XConn Technologies to add advanced PCIe and CXL switching that supports UALink capabilities.
- Stifel models initial XConn revenue in Marvell’s fiscal Q3 2027 and a ~$50 million annualized run rate by fiscal Q4, trimming FY27 EPS to $3.37 after a $325 million cash outlay and ~2.7 million new shares.
- Recent analysis highlights robust AI-led data-center momentum, with Marvell’s Q3 showing roughly 37–38% year-over-year revenue growth.
- Commentary cites a relative valuation discount versus peers and potential upside, while emphasizing execution, integration and customer-concentration risks heading into Q4 results.