UBS raises Marvell price target to $340 on CXL demand

UBS raised its price target on Marvell Technology to $340 from $230 on Monday, pointing to faster-than-expected demand for Compute Express Link (CXL) connectivity in AI data centers. The brokerage also lifted its target on Astera Labs to $400 from $205 and kept a Neutral rating.

Analyst Timothy Arcuri described CXL as a cache-coherent, low-latency, high-bandwidth interconnect built on PCIe and noted that AI workloads are pushing data centers to require larger memory pools and faster data movement. He wrote, “CXL is becoming a critical enabling technology. We believe MRVL has the leading market share in CXL products to date, but we do see ALAB becoming a larger player.” UBS expects demand to rise as data center designs move to rack-wide and multi-rack memory fabrics that link CPUs and XPUs.

UBS raised its revenue and earnings forecasts for Marvell to reflect stronger CXL demand. The firm now projects revenue of $16.8 billion in 2027, up from $16.5 billion, and $23.9 billion in 2028, up from $21.9 billion. It forecasts CXL-related revenue of about $1 billion in 2027 and roughly $2 billion in 2028. Adjusted earnings-per-share estimates were increased to $6.23 for 2027 and $9.62 for 2028, from previous forecasts of $6.09 and $8.60.

The brokerage estimates the addressable market for CXL-related ASIC attachment products at $7 billion to $10 billion by 2030. UBS notes Marvell currently leads the CXL market but expects competition from Astera Labs and Broadcom as adoption widens.

Marvell has a market capitalization near $233 billion, reported 34% revenue growth over the past 12 months, and its shares have risen about 190% so far in 2026. The stock traded down roughly 1% on Monday after UBS’s report.

Other analysts have also raised targets for Marvell this month. A team led by John Vinh increased its price target to $385 from $260 and kept an Overweight rating; the stock rose 14% after that report. Following an investor meeting, KeyBanc highlighted Marvell’s optical networking business and estimated the addressable market for optical transceivers at about $30 billion by 2030. Marvell supplies the digital signal processors used inside those transceivers.

Marvell is known for custom application-specific integrated circuits for hyperscale cloud providers. Analysts note the company’s networking products are an additional source of revenue as AI infrastructure spending expands.