Marvell Technology shares have fallen 37% from their prior high amid investor caution over AI infrastructure spending, but the pullback may be a buying opportunity given strong data center demand. The company reported 28% year-over-year revenue growth and now expects full-year revenue to rise 40% to $11.5 billion, with data center revenue projected to climb about 50% in fiscal 2027 and accelerate to roughly 55% in fiscal 2028. Management also doubled its forecast for near-packaged optics and co-packaged optics revenue to $300 million next fiscal year, up from $150 million, as customers prioritize latency reduction. The stock trades at a forward price-to-earnings multiple of about 52, but analysts expect earnings to grow about 37% annually, and management sees operating margins reaching the upper end of its 38% to 40% target through fiscal 2028. Nvidia CEO Jensen Huang recently called Marvell the "next trillion-dollar company," highlighting its role in AI networking, though risks remain if data center spending slows.
