Bond.az – Marvell Technology (NASDAQ:MRVL) shares rose 7% Tuesday after HSBC upgraded the stock to Buy with a $300 price target, up from $85.
HSBC analyst Frank Lee cited underestimated revenue growth from optical interconnect and compute express link. The new target is 53% above current levels and exceeds the prior Street-high of $230.
Lee raised FY2027 optical interconnect revenue to $5.2B (10% above consensus) and FY2028 to $8.8B (37% above). He expects the optical transceiver market to grow 70% in 2027 as AI clusters expand.
“We believe revenue growth from optical interconnect is still underestimated,” Lee wrote.
Marvell holds a majority market share in Digital Signal Processors with a 1:1 attach rate to optical transceivers. HSBC raised FY2027 and FY2028 EPS estimates by 21% and 61% to $4.07 and $7.12, respectively.
Susquehanna raised its target to $230 from $100, citing Amazon’s capex increase to $218B and a new agreement with Anthropic.
