Key Takeaways:
- The 2-Minute Valuation Model values Marvell stock at $84 per share in 2 years.
- That’s a potential 40% upside from today’s price of $60 per share, which would translate to approximately 18% annual returns over the next two years.
- MRVL stock is projected to grow EPS by 175% over the next 3 years as AI infrastructure demand accelerates.
- The semiconductor stock is trading near historical lows, despite being a key enabler of AI with data center exposure.
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Marvell Technology (MRVL) is a leading semiconductor company specializing in data infrastructure solutions, powering everything from data centers and cloud computing to 5G networks and automotive applications.
With its cutting-edge chips enabling AI workloads, high-speed networking, and storage solutions, Marvell has positioned itself at the center of the digital transformation driving modern technology infrastructure.
With MRVL stock now trading at $60 per share, Marvell presents a compelling opportunity for investors seeking exposure to the AI revolution and data center growth at an attractive valuation following recent market volatility.
Let’s examine why this semiconductor leader could deliver substantial returns as the company scales earnings growth and benefits from the expanding AI infrastructure market.
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What is the 2-Minute Valuation Model?
Three core factors drive a stock’s long-term value:
- Revenue Growth: How big the business becomes.
- Margins: How much the business earns in profit.
- Multiple: How much investors are willing to pay for a business’s earnings.
Our 2-Minute Valuation Model uses a simple formula to value stocks:
Expected Normalized EPS * Forward P/E ratio = Expected Share Price
Revenue growth and margins drive a company’s long-term normalized earnings-per-share (EPS), and investors can use a stock’s long-term average P/E multiple to get an idea of how the market values a company.
Why MRVL Stock Looks Undervalued
Forecast
Based on analyst estimates, Marvell Technology is expected to experience strong earnings growth over the next three years as demand for AI infrastructure accelerates.
EPS is projected to surge from $1.57 in 2025 to $4.32 by 2028, representing a 175% increase over a three-year period.
The growth trajectory exhibits impressive acceleration, driven by the tailwinds of AI and data centers. In fiscal 2026, MRVL stock is expected to deliver 78% EPS growth, followed by 28% in 2027 and 21% in 2028.
This earnings growth for MRVL stock is likely to be driven by:
- AI infrastructure boom: Marvell’s custom ASICs and networking chips are essential for AI training and inference.
- Data center expansion: Growing demand for high-performance computing and cloud infrastructure.
- 5G network buildout: Continued investment in next-generation wireless infrastructure.
- Automotive electrification: Increasing semiconductor content in electric and autonomous vehicles.
For our valuation, we’ll estimate that Marvell stock will reach $4 in EPS in fiscal 2028.
See Marvell’s full analyst estimates and growth forecast (It’s free) >>>
Valuation Multiple
As shown in the valuation chart, Marvell stock trades at approximately 20x forward earnings, which is below its 10-year historical average P/E of 27x.
For our valuation, we’ll use a conservative forward P/E multiple of 21x. This is well below the company’s historical average and just above the current multiple, which is reasonable given the company is expected to grow earnings at over 20% annually.
Fair Value of MRVL Stock
Using our 2-Minute Valuation Model and applying a conservative approach:
- Conservative 2028 EPS estimate: $4
- Conservative forward P/E multiple: 21x
Expected Normalized EPS ($4) * Forward P/E ratio (21x) = Expected Share Price ($84)
The 2-year expected MRVL stock price we would get from this valuation is $84 per share.
Marvell stock is currently trading at around $60 per share, which implies a potential upside of 40% over the next two years or an 18% annualized return.
An 18% annual return would be nice for investors, considering the S&P 500 index has delivered approximately 10% annual returns over the last six decades.
Remember, this is just a valuation exercise, and we don’t know for sure what the stock’s price will be in the future.
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What is the Average Analyst Price Target for Marvell Stock?
Analysts think Marvell stock is undervalued, with an average price target of $91/share. That implies approximately 51% upside from its current trading price.
Risks to Consider
Despite the bullish outlook, investors should be aware of several risks that could impact the chip maker’s growth trajectory:
- Semiconductor cyclicality: Chip demand is sensitive to economic downturns and inventory cycles.
- Competition intensity: Rivals like Broadcom and Intel are investing heavily in similar markets.
- Geopolitical tensions: Trade restrictions and China exposure could impact business.
- Customer concentration: Dependence on major cloud providers and telecom equipment makers.
TIKR Takeaway
Marvell Technology presents a compelling value opportunity at current levels. The tech stock’s upside potential is driven by its leadership position in AI infrastructure, strong earnings growth trajectory, and exposure to secular trends in data centers and 5G, all while trading at historically attractive multiples.
While MRVL stock faces the typical cyclical risks of the semiconductor industry, its technology differentiation, diverse end markets, and positioning in high-growth areas make it uniquely positioned for the continued digitization of the global economy.
Is Marvell stock a buy over the next 24 months? Use TIKR to check the stock’s analyst price targets and growth forecasts to see if it is undervalued today.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
