The primary driver behind the upgraded outlook is Marvell’s optical business, with RBC expecting strong momentum in the segment to continue throughout the year.

Nvidia’s recent investment in Marvell further validates the company’s leadership position in optical interconnect technology.

The broader trend toward customized XPUs remains solid, although near-term upside could face some limitations due to tight wafer supply constraints.

Marvell is expected to remain a key supplier to Amazon, while RBC believes AWS’s recent partnerships with OpenAI and Anthropic represent a meaningful long-term positive catalyst for Marvell.

Microsoft’s XPU project is expected to enter mass production in early 2027.

Marvell currently maintains multiple customized XPU partnerships with several hyperscale cloud providers, and the company’s revenue momentum is expected to remain strong over the next two to three years.

In other recent developments, Marvell Technology announced the acquisition of Swiss company Polariton Technologies, which specializes in silicon photonics devices based on plasmonic technology.

The strategic acquisition is intended to strengthen Marvell’s optical product portfolio for data-center interconnect applications by integrating advanced modulation technologies.

Bank of America Securities also raised its target price for Marvell Technology to US$200.

The revision reflects the bank’s increasingly optimistic outlook for growth in AI networking, particularly in Ethernet transceivers and co-packaged optics.

Market Analysis:

JPMorgan denied recent market rumors suggesting Marvell had already secured a TPU business partnership agreement with Google, stating that no formal agreement has been signed between the two parties.

However, JPMorgan acknowledged that Marvell is currently in discussions with Google and another company regarding an LPU-related project.

These latest developments further highlight Marvell’s strategic positioning and aggressive expansion efforts within the technology sector.