By Angela Palumbo
Marvell Technology's fourth-quarter financials could get a boost as customers continue to need the hardware necessary to power artificial intelligence.
Marvell is scheduled to report fourth-quarter results after the stock market closes on Thursday. Analysts surveyed by FactSet expect the chip maker to post adjusted earnings of 79 cents a share on revenue of $2.21 billion.
In the same period last year, Marvell reported earnings of 60 cents a share on revenue of $1.82 billion.
Analysts also expect the company to report data center revenue of $1.63 billion, a 19% increase from the previous year.
Tech giants like Microsoft and Amazon.com are building data centers, large facilities that house the infrastructure needed to power AI workloads. Marvell makes the products that help power those sites, which has helped drive the company's recent revenue growth.
Stifel analyst Tore Svanberg wrote in a note on Tuesday that he thinks Marvell's revenue should see a benefit from tech giants choosing to continue spending heavily as they work to fill AI demand. Barron's previously reported that combined capital expenditures this year from Microsoft, Alphabet, Amazon, and Meta Platforms are expected to be about $650 billion.
"Hyperscalers are signaling compute capacity constraints through most or all of 2026, while raising CapEx guidance for the year well above consensus numbers across the board," Svanberg wrote. "We think this recent commentary and guidance bode well for Marvell in CY26E, and potentially signal a strong January quarter as well."
Svanberg rates Marvell as a Buy with a $114 price target.
Shares have dropped 13% over the past 12 months and 7.5% this year. While Marvell's products are in high demand, the company relies on a few large customers for a significant amount of its sales. Investors are closely watching the risk that some of those customers could design their own chips or turn to competitors.
Write to Angela Palumbo at angela.palumbo@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
March 05, 2026 01:30 ET (06:30 GMT)
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