Marvell Technology (MRVL) is expected to post "largely better" fiscal Q4 results and Q1 outlook, driven by continued growth in artificial intelligence optics and custom AI application-specific integrated circuit products, BofA Securities said Tuesday in a report.
"Improving AI visibility" into fiscal 2026 was cited as the cloud capex outlook continues to increase and the custom silicon pipeline and execution "remains solid," BofA said.
In Q4, BofA's estimated AI segment sales of $860 million compare with the consensus forecast of $737 million. In Q1, Wall Street expects AI sales to increase 23% to $900 million from Q4.
"EPS power" may reach around $5.18 by calendar year 2027 versus BofA's current $4.13 estimate on long-term AI prospects, according to the report.
The company is set to report quarterly results on March 5. A June 10 investor day may be "a potential catalyst" with an increase in the near-term AI target, BofA said.
BofA maintained its buy rating on Marvell stock with a price target of $150.
Marvell shares rose 4.1% in recent Wednesday trading.
Price: 111.65, Change: +4.36, Percent Change: +4.06
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