--- title: "Goldman Sachs Comments on Marvell Quarterly Results: Perfectly Aligned with Wall Street Expectations, Keep a Close Eye on These Three Core Factors Next!" type: "News" locale: "en" url: "https://longbridge.com/en/news/287913997.md" description: "Goldman Sachs believes that despite previously elevated market expectations, the company's strong data center demand and resilience in AI-related businesses drove a modest short-term rise in its stock price. However, Goldman Sachs maintains a \"Neutral\" rating, arguing that medium-to-long-term performance will depend on data center growth targets, progress in the Google ASIC partnership, and demand shifts driven by Agentic AI" datetime: "2026-05-28T12:01:52.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287913997.md) - [en](https://longbridge.com/en/news/287913997.md) - [zh-HK](https://longbridge.com/zh-HK/news/287913997.md) --- # Goldman Sachs Comments on Marvell Quarterly Results: Perfectly Aligned with Wall Street Expectations, Keep a Close Eye on These Three Core Factors Next! Marvell Technology delivered quarterly results that closely matched Wall Street Expectations, boosting market confidence with better-than-expected guidance for the next quarter. Management also hinted at raising full-year guidance for FY27/28. Goldman Sachs believes that **the stock price is poised for a modest short-term rise, but medium-to-long-term performance will hinge on the evolution of three core variables.** According to Zhuifeng Trading Desk, Goldman Sachs' latest research report pointed out that **Marvell's revenue in the first fiscal quarter reached $2.418 billion, basically in line with Goldman Sachs' forecast of $2.396 billion and the Wall Street consensus of $2.412 billion, representing a year-over-year increase of 27.6% and a quarter-over-quarter increase of 9.0%** . Meanwhile, the midpoint of the company's revenue guidance for the second fiscal quarter was $2.700 billion, exceeding Goldman Sachs' forecast by 3.4% and the Wall Street consensus by 3.0%, showing a significant beat. Management also signaled a potential upward revision to the full-year guidance for FY27/28 but did not disclose specific figures. Goldman Sachs pointed out that due to strong earnings reports from peers and sustained high capital expenditures from core customers, market expectations for Marvell were already at a high level before this quarterly report. In this context, the better-than-expected guidance still managed to drive a modest rise in the stock price, demonstrating the resilience of the company's fundamentals. Goldman Sachs currently maintains a Neutral rating on Marvell with a 12-month target price of $125, implying approximately 40% downside potential from the stock price of $208.26 at the time of the report's release. ## All Quarterly Metrics Fully Met Expectations Marvell's core financial metrics in the first fiscal quarter closely aligned with forecasts from both Goldman Sachs and Wall Street. Revenue was $2.418 billion, 0.9% higher than Goldman Sachs' forecast and 0.2% higher than the Wall Street consensus. Of this, data center business revenue was $1.833 billion, exactly matching predictions from both Goldman Sachs and Wall Street; communications and other business revenue was $585 million, exceeding Goldman Sachs' forecast by 2.8% and the Wall Street consensus by 0.8%, serving as one of the sources of the slight beat this quarter. Profitability remained robust as well. The non-GAAP gross margin was 58.9%, 15 basis points higher than Goldman Sachs' forecast and 7 basis points higher than the Wall Street consensus; the non-GAAP operating margin was 35.0%, in line with the Wall Street consensus and 27 basis points higher than Goldman Sachs' forecast; non-GAAP earnings per share (EPS) was $0.80, fully consistent with the Wall Street consensus and $0.01 higher than Goldman Sachs' forecast. ## Second Fiscal Quarter Guidance Beats Expectations Across the Board Marvell's performance guidance for the second fiscal quarter exceeded market expectations in terms of revenue, gross margin, and earnings per share. The midpoint of the revenue guidance was $2.700 billion, with a range of $2.565 billion to $2.835 billion, exceeding Goldman Sachs' forecast by 3.4% and the Wall Street consensus by 3.0%. This corresponds to a year-over-year growth of approximately 34.6% (based on the upper end of the guidance) to 30.1% (based on the lower end). The midpoint of the non-GAAP gross margin guidance was 58.75%, 25 basis points higher than Goldman Sachs' forecast and 16 basis points higher than the Wall Street consensus; the midpoint of the non-GAAP EPS guidance was $0.93, exceeding Goldman Sachs' forecast by 2.8% and the Wall Street consensus by 1.8%. Operating expense guidance was set at $600 million. Management also stated that there is room for an upward revision to the full-year guidance for FY27/28 but did not provide quantitative data. ## Three Core Variables to Dictate Future Market Direction Goldman Sachs believes that Marvell's medium-term stock performance will primarily depend on three key issues, which investors are expected to focus on during the earnings conference call. **First, updates to data center revenue growth targets.** The market will closely watch whether management provides clearer quantitative guidance on data center revenue growth targets for CY2026/27, which will directly impact the market's valuation of the long-term growth potential of the company's AI infrastructure business. **Second, potential progress in the Google ASIC partnership.** Management's comments on the potential partnership with Google for ASICs will be a key highlight of this conference call. The expansion of the customer base for custom computing chip business directly relates to Marvell's competitive landscape and share trajectory in the AI chip market. **Third, the impact of Agentic AI on the company's fundamentals.** As AI applications evolve from inference to autonomous agents (Agentic AI), the market seeks to understand how this trend will specifically affect Marvell's product demand, revenue structure, and long-term growth path. ## Goldman Sachs Maintains Neutral Rating with a Target Price of $125 Despite the solid quarterly performance and better-than-expected guidance, Goldman Sachs maintains its Neutral rating on Marvell with a 12-month target price of $125. This is derived from a P/E ratio of 28 times multiplied by an estimated normalized EPS of $4.50, implying approximately 40% downside potential from the current stock price of $208.26. Goldman Sachs predicts that Marvell's revenue will grow from $8.195 billion in FY26 to $11.117 billion in FY27, $15.356 billion in FY28, and $19.615 billion in FY29; corresponding EPS figures are projected to be $3.27, $5.00, and $6.96, respectively. ### Related Stocks - [MRVL.US](https://longbridge.com/en/quote/MRVL.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [MVLL.US](https://longbridge.com/en/quote/MVLL.US.md) - [FTXL.US](https://longbridge.com/en/quote/FTXL.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [SOXQ.US](https://longbridge.com/en/quote/SOXQ.US.md) - [GS.US](https://longbridge.com/en/quote/GS.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [W4VR.SG](https://longbridge.com/en/quote/W4VR.SG.md) ## Related News & Research - [Options data reveals where Marvell stock will head after Q1 earnings](https://longbridge.com/en/news/287803928.md) - [World Investment Advisors Has $5.75 Million Stock Holdings in Marvell Technology, Inc. $MRVL](https://longbridge.com/en/news/287909969.md) - [Marvell Technology (NASDAQ:MRVL) Issues Quarterly Earnings Results, Meets Estimates](https://longbridge.com/en/news/287818775.md) - [Does Marvell (MRVL) Keeping a Combined Chair-CEO Clarify or Complicate Its AI Investment Story?](https://longbridge.com/en/news/287602871.md) - [Analysts boost Marvell targets as stock hits record high](https://longbridge.com/en/news/287421578.md)