JPMorgan has raised its CY28 earnings per share forecast for Marvell Technology to $11, or 14% above the current consensus of $9.64, according to the bank’s Aug. 24 preview note on the company’s fiscal 2027 second quarter, the July quarter. The bank reiterated its Overweight rating and said Marvell’s data center growth setup has strengthened over the past 90 days.
In the note, JPMorgan said Google’s custom chip partnership is now publicly in place, Amazon Web Services’ Trainium 3 has started to ramp, and Microsoft’s Maia XPU order book remains strong. With all three hyperscalers appearing on Marvell’s customer roster, the bank said investors still do not fully reflect the company’s stack spanning optical DSP, XPU ASIC and switch silicon.
July-quarter results seen in line or slightly ahead
JPMorgan expects Marvell’s fiscal 2027 second-quarter results to land in line with, or modestly above, market expectations. Optical DSP demand is described as strong, with both the 1.6T and 800G generations ramping at the same time. The Teralynx 10 switch chip continues to win customer adoption, while the custom silicon business is beginning to benefit from the initial ramp of AWS’s 3nm Trainium 3 program.
The bank expects Trainium 3 shipments to accelerate in the second half of the year, while Trainium 2 gradually rolls off over the same period, creating a generational transition. Taken together, the overlap between the two products is expected to have a meaningful effect on Marvell’s data center revenue. JPMorgan added that growth trends in optical DSP and switching remain firm as well.
October-quarter revenue guidance could approach $3.1 billion
For Marvell’s fiscal 2027 third quarter, the October quarter, market consensus currently stands at $3.028 billion in revenue. JPMorgan expects the company’s official guidance to come in near $3.1 billion, implying 13% to 14% quarter-over-quarter total revenue growth. Data center growth is expected to run faster, at 16% to 18% sequentially.
JPMorgan listed four growth drivers behind that view: a steeper ramp in Trainium 3 shipments, continued strength in optical DSP and switching demand, a wider set of XPU-related opportunities, and progress in the Maia 3nm program in line with plan. The bank said the calendar 2027 order book for Maia 3nm is already solid, and design work around the next-generation Maia 2nm has also begun.
Data center outlook may be revised higher
One of the market’s main focus points is Marvell’s calendar 2027 data center revenue guidance. The company’s current outlook calls for 55% year-over-year growth, but JPMorgan said that figure looks conservative.
The bank pointed to six supporting factors: continued volume growth in optical DSP, broader customer adoption of Teralynx 10, ramps in storage and CXL controllers, the scale of Trainium 3, visibility around Maia, and a wider pipeline of XPU companion chips. On that basis, JPMorgan said Marvell’s revenue and earnings outlook for calendar years 2026 through 2028 should come in above prevailing consensus.
JPMorgan also said the public rollout of the Google partnership adds support to Marvell’s strategic role in the cloud custom-chip ecosystem. In the bank’s wording, this is not only a win for a single XPU program, but also a broader lift in the company’s standing as an independent chip partner among hyperscale customers.
Overweight maintained, $240 price target unchanged
JPMorgan reiterated its Overweight rating and kept its $240 price target. The bank said an $11 EPS outcome for calendar 2028 would put Marvell 14% above the current $9.64 consensus, and that path is becoming easier to see.
On risk, the note highlighted several areas: any marginal slowdown in AI capital spending would directly hit the data center business; shifts in ASIC competition could affect share; optical communications market share needs ongoing tracking; and high customer concentration remains a structural discussion point. JPMorgan said those risks have already been widely debated by the market, and that current valuation reflects a meaningful level of caution, leaving more upside than downside.
Source note and disclaimer
The article was presented by ChaoXiang Research as an interpretation of a third-party brokerage report from JPMorgan dated Aug. 24, 2026, together with public market information. It said that the ratings, price target, earnings forecasts and related judgments cited in the piece are the views of the brokerage analysts and represent the position of their institution only, not that of ChaoXiang Research, and do not constitute investment advice.
The original text also said markets carry risk, decisions should be made independently, and the article should not be used as a basis for buying or selling any security.