Is Marvell Stock Priced Right Against Its Peers?

Investors in Marvell Technology (MRVL) have seen the stock return 220.8% over the past twelve months, making it the top performer in a group of five chipmakers. That peer group includes NVIDIA, Broadcom, Advanced Micro Devices and Qualcomm. Yet the underlying financials reveal a different hierarchy, with the company ranking only fourth of the five on revenue growth, and fourth on operating margin. So how much are buyers now paying for Marvell’s earnings, next to those peers?

Marvell Buyers Pay A Higher Multiple Than NVIDIA’s

At present, Marvell trades at 96.8 times its earnings of the last twelve months, a stark contrast to the 29.8 times investors pay for NVIDIA. Buyers are accepting this higher multiple for a business growing more slowly. Over those twelve months, Marvell saw its revenue rise 30.6%, while NVIDIA posted an 83.4% increase. The profitability divide is equally wide. NVIDIA turned 65.2% of its revenue into operating profit, against 16.8% at Marvell.

Looking across the group, Marvell commands the second-highest P/E of the five. Only Advanced Micro Devices is priced higher, trading at 163.8 times earnings, but its revenue grew 39.5%, faster than Marvell’s 30.6%. Broadcom trades at 46.9 times earnings, which is about half Marvell’s multiple, yet its sales grew 48.7%. Qualcomm rounds out the group at 20.2 times earnings, the lowest multiple of the five, though one of its last four quarters was a loss.

What Marvell Sells To Data Centers

Data centers supplied 79% of Marvell’s revenue in fiscal Q2 2027, which management reported on August 27, 2026. Data center sales hit $2.17 billion, climbing 46% from a year earlier. Marvell sells chips that link and switch data center equipment, alongside building custom chips for hyperscalers, the largest data center operators. Highlighting this strategy, management disclosed an expanded agreement with a key hyperscaler in August.

The current stock price appears to assume that Marvell will become many times larger over the coming years. Management laid out exactly that vision on October 6, 2026, when it forecast fiscal 2031 revenue of $70 billion to $90 billion. For perspective on the scale of that ambition, the company took in $9.5 billion of revenue over the last twelve months.

Marvell Guided To Higher Sales And Lower Gross Margin

Looking ahead to fiscal Q3 2027, management forecast revenue of $3.15 billion, plus or minus 5%. Given that Marvell reported $2.739 billion for fiscal Q2, this guidance points to another quarter of growth. Management also expects a lower gross margin. The company guided adjusted gross margin to between 57.5% and 58.5%, trailing the 58.9% Marvell reported on the same basis for Q2. During the August 27 call, management said a strong ramp in custom chips was the main reason.

Keeping gross margin inside that range while delivering revenue at or above $3.15 billion would show the custom chip ramp is on track and costing Marvell no more gross margin than management forecast.

Ultimately, buyers at today’s multiple appear to be counting on Marvell to grow far faster than it has, and management has forecast exactly that. However, Marvell’s reported results still rank fourth of five in its group on both growth and operating margin. The company has yet to show it can grow that fast, and management expects a lower gross margin as custom chips ramp.

How To Act On MRVL?

Now you know MRVL better. And that’s our purpose: to make you informed before you invest your money. However, making a bet on a single stock carries its own risks.

There is a smarter choice. Since its inception, the Trefis High Quality (HQ) Portfolio has beaten the benchmark that combines the three major indices – the S&P 500, S&P Mid-cap, and Russell 2000. And it did so without taking the concentrated risk that comes with do-it-yourself stock picking.

If you’d rather act on MRVL itself:

Play Offense	Play Defense
Learn More About MRVL & Invest	Save Taxes On Capital Gains
Earn From MRVL Cash Secured Puts	Covered Call Against MRVL

See Your Next Steps On MRVL