Susquehanna joins the bullish ranks of MRVL.US (MRVL.US) ahead of performance: demand for AI networks continues to explode, raising the target price to $265
The Zhitong Finance App learned that in the wave of AI infrastructure investment that continues to blowout, Maywell Technology (MRVL.US) has become the focus of attention in the semiconductor market this week. This core supplier in the field of custom AI chips and high-speed connectivity will announce the results for the second quarter of the 2027 fiscal year after the market on August 27 (Thursday). On the eve of the earnings report, Susquehanna analyst Christopher Rolland raised the target price sharply from $230 to $265 and maintained a “buy” rating. In addition, other Wall Street analysts have intensively raised their target prices this week. Rosenblatt, Wells Fargo and many other institutions are collectively bullish, and it is generally expected that the company will hand over answers that “exceed expectations and raise guidelines.”
Earnings Forecast: Revenue of US$2.71 billion, up 35% year-on-year
The market's expectations for Maywell Technology's performance this quarter are quite consistent. According to Visible Alpha and Zacks data, analysts generally expect:
Maywell Technology's previous official guidance was revenue of 2.7 billion US dollars (± 5%), and the adjusted EPS was 0.93 US dollars (± 0.05 US dollars). Market expectations fell almost entirely at the midpoint of the company's guidelines. The data center business continues to be the absolute mainstay. The company's stock price has accumulated a cumulative increase of nearly 180% this year, making it one of the best performing S&P 500 constituent stocks. Data center revenue reached $1.83 billion in Q1, up 27% year over year, accounting for 76% of total revenue. As hyperscale customers such as Amazon (AMZN.US), Microsoft (MSFT.US), and Google (GOOGL.US) continue to increase AI infrastructure, the market will pay close attention to whether the Q3 guidelines can continue this high growth trend.
Options market pricing shows that Maywell Technology's stock price may fluctuate about 11.3% in both directions after the earnings report.
Susquehanna: The target price was raised to $265, and the AI network became the core driving force
Susquehanna analyst Christopher Rolland raised the target price from $230 to $265 before earnings reports, maintaining a “positive” rating. Rolland wrote in a report to clients that performance and guidance are expected to improve, “mainly due to strong growth in the AI network business.”
Rolland placed special emphasis on the growth potential of Inphi, the high-speed optical communications division of Maywell Technology — the company expects Inphi to grow by more than 70% in 2027, far higher than the previous target. In terms of the custom XPU business, Rolland pointed out that AWS has raised the 2026 capital expenditure guidelines to US$220 billion (previously about US$200 billion), and that the cooperation between Maywell Technology and Amazon on Trainium chips is “remarkable” and “continues to be stable.”
More notably, Rolland reiterated Maywell Technology's goal of reaching approximately $10 billion in customized business revenue for the 2029 fiscal year — which means another significant acceleration in growth from the estimated $4 billion in FY2028. He also pointed out that the agreement with Google covers a custom product business of about 120 billion US dollars and is valid until 2033. This partnership may push Maywell Technology to further increase its customized XPU targets for the 2028 and 2029 fiscal years.
Wall Street collective increase: From Rosenblatt to Wells Fargo, the highest target price reached $310
Susquehanna isn't the only agency that raised target prices before financial reports.
Rosenblatt Securities analyst Sajal Dogra raised the target price sharply from $240 to $300, maintaining a “buy” rating. Dogra expects strong Q2 performance, and the optical interconnect business will grow by more than 25% month-on-month. Rosenblatt expects Maywell Technology to achieve earnings of approximately $10.50 per share in the 2029 fiscal year.
Wells Fargo analyst Aaron Rakers raised the target price from $240 to $310, maintaining a “buy” rating. Rakers sees Google's partnership on customized AI chips as a “significant incremental benefit”. It is expected that the deal will contribute an increase of about $2 to EPS by FY2029, and predicts that Maywell Technology will achieve an EPS of about $11 by FY29.
UBS analyst Timothy Arcuri raised the target price from $300 to $310. Benchmark analyst Cody Acree maintains a “buy” rating with a target price of $275. Additionally, Oppenheimer, Citi, and Jefferies have all recently raised their target prices due to stronger AI demand, hyperscale spending, or custom chip pipelines.
Currently, Wall Street's consensus rating for Mewell Technology is a “strong buy”. The average target price is about 291 US dollars, which means that there is still about 27% upside compared to the current price of about 237 US dollars.
The biggest highlight: Google's $120 billion order and the expansion of the custom chip business
On August 19, Maywell Technology announced that it has reached a major agreement with Google — Google can purchase up to 120 billion US dollars of customized chip products by 2033, covering AI inference accelerators, memory controllers, network interface cards, and components related to the TPU ecosystem. As part of the agreement, Google obtained a warrant to purchase up to 58.97 million shares of Maywell Technology shares at an exercise price of US$206.58, accounting for about 7% of the company's total share capital.
This agreement further strengthens Maywell Technology's strategic position in the field of ultra-large-scale customized chips. Prior to that, Maywell Technology was already a core partner of Amazon Trainium and Microsoft Maia custom chips. Matt Murphy, CEO of Mywell Technology, said earlier that the company's long-term goal is to seize 20% of the entire custom AI chip market.
However, the competitive landscape is still fierce — Broadcom (AVGO.US) is still Google's main partner for TPU and is Maywell Technology's strongest competitor in the field of customized AI chips.
Higher expectations and valuation challenges
Despite strong performance expectations, the biggest challenge facing Maywell Technology comes from valuation. After a sharp rise of nearly 180% during the year, MRVL is currently trading at 17 times the forward price-earnings ratio and 74 times the forward price-earnings ratio — making it one of the most highly valued companies in the S&P 500.
Rosenblatt pointed out that Investor Day on October 6 may be a more important valuation catalyst than this financial report. Overvaluation means that any performance falling short of expectations or “not exceeding expectations” could trigger a sharp pullback — which also explains the 10.6% implied fluctuation in options market pricing.