Marvell's Q1 Earnings Report Beats Expectations, UBS Raises Price Target, AI Hardware Industry Sentiment Significantly Boosted

BlockBeats News, May 29th, Marvell Technology (MRVL), a US semiconductor company, recently announced its performance for the first quarter of the 2027 fiscal year. The company achieved a revenue of $24.18 billion, a 28% year-over-year increase, surpassing Wall Street's expectations by approximately $240 million; non-GAAP earnings per share were $0.80, slightly higher than analysts' expectations of $0.79. Among them, the data center business (covering AI custom chips, optical interconnect, and silicon photonics products) contributed $18.3 billion, accounting for 76% of total revenue, becoming the growth core.

Marvell also significantly raised its future guidance: the midpoint of the second-quarter revenue guidance is $27 billion, exceeding market expectations; the full-year revenue target for the 2027 fiscal year was raised to around $115 billion (a year-over-year growth of approximately 40%), and the 2028 fiscal year is expected to approach $150 billion. The company's management emphasized that the demand for AI data centers is currently in an "acceleration phase," and the growth rate of optical interconnect and custom silicon businesses will lead significantly.

UBS Securities maintained a "Buy" rating on Marvell and raised the target price from $195 to $230. The institution believes that the company's strong execution and design leadership in AI data center custom chips and optical interconnect fields will further solidify its key position in the GPU ecosystem.

The market responded positively to the financial report and UBS research report. Several investment banks subsequently followed suit by raising their target prices (including Bank of America to $240 and Oppenheimer to $250). Analysts generally believe that this combination of "better-than-expected performance + significant guidance upgrade" further confirms the resilience and growth momentum of AI infrastructure demand. As a core supplier of optical interconnect and custom chips in the GPU supply chain, Marvell's long-term growth narrative is reinforced, significantly boosting sentiment across the entire AI hardware industry chain.

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