MRVL Strengthens AI Connectivity Stack: More Upside Ahead?

Marvell Technology MRVL is transforming itself into a key contributor to the connectivity hardware solutions for AI infrastructure and data centers. The company recently launched the Golden Cable initiative to accelerate and expand the Active Electrical Cable (AEC) ecosystem for faster deployment of AI infrastructure by cloud and hyperscaler customers.AECs are crucial for short-reach, high-density connections inside and between racks. This technology supports next-generation 1.6T connectivity for superfast networks. Now, MRVL’s partners will be able to validate cable architectures, advanced firmware, calibration data, and get support for integration and interoperability through the Golden Cable initiative.Marvell Technology is also gaining from the adoption of scale-up switches that connect AI accelerators within and across racks, requiring multi-terabit bandwidth and ultra-low latency. These switches will support both open standard Ethernet and UALink fabrics, leveraging Marvell Technology’s low-latency SerDes and Ethernet switch IP.Volume shipments of MRVL’s next-generation 200G per lane 1.6T PAM DSPs are also a tailwind. Furthermore, the company announced that leading AI and data center infrastructure companies are now adopting its Alaska PCIe 6 retimer product line to support next-generation accelerated AI infrastructure.In the third quarter of fiscal 2026, MRVL’s data center revenues of $1.52 billion increased 37.8% year over year and 1.8% sequentially, driven by strong traction in electro-optic interconnect products and next-generation switch offerings. Carrier infrastructure revenues increased 98% year over year and 29% sequentially to $167.8 million.How Competitors Fare Against MRVLMarvell Technology competes with Broadcom AVGO and Credo Technology CRDO in the connectivity market. Credo has a wide portfolio of AEC, SerDes IP, Retimer ICs, and system design. Credo’s business is mainly driven by its strong AEC business, which posted double-digit sequential growth last quarter.Credo’s hyperscaler customer base is expanding, while it is also experiencing robust growth in optical DSP and LRO solutions, along with rising PCIe and Ethernet retimer adoption. Broadcom has a stronghold in carrier Ethernet and transport markets and is a major player in telecom optical interconnects and routing silicon space. Broadcom’s advanced 3.5D XDSiPs are crucial for AI XPU connectivity due to higher density.MRVL's Price Performance, Valuation and EstimatesShares of Marvell Technology have gained 20.4% in the past six months compared with the Zacks Electronics - Semiconductors industry’s growth of 36.8%.MRVL 6-Month Performance ChartImage Source: Zacks Investment ResearchFrom a valuation standpoint, Marvell Technology trades at a forward price-to-sales ratio of 7.35X, lower than the industry’s average of 7.46X.MRVL Forward 12-Month (P/S) Valuation ChartImage Source: Zacks Investment ResearchThe Zacks Consensus Estimate for MRVL’s fiscal 2026 and 2027 earnings implies year-over-year growth of 81% and 26%, respectively. The estimates for fiscal 2026 and 2027 have been revised upward in the past 60 days.Image Source: Zacks Investment ResearchMarvell Technology currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Zacks Naming Top 10 Stocks for 2026Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5. Be First to New Top 10 Stocks >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marvell Technology, Inc. (MRVL): Free Stock Analysis Report Broadcom Inc. (AVGO): Free Stock Analysis Report Credo Technology Group Holding Ltd. (CRDO): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks