This Dividend-Paying Chip Stock Just Doubled and Analysts Say It's Still 50% Undervalued

Marvell Technology designs custom silicon and networking chips for hyperscaler data centers, including custom AI XPUs, electro-optics, PAM DSPs, and DCI modules. The company pays a small $0.06 quarterly dividend while positioning AI as the majority of data center revenue. Custom AI design activity is described as at an all-time high, with over 50 opportunities across more than 10 customers. The stock has risen sharply year-to-date and over the past year. Consensus price targets trail the current price, with no Sell ratings and mostly Buy ratings. In Q4 FY2026, revenue reached $2.22 billion, up 22% year over year, driven by the Data Center business. A $300 per-share scenario depends on EPS growth toward about $4.00 and implies a high forward multiple, while $400 requires additional EPS growth and multiple expansion.

"Marvell Technology ( NASDAQ:MRVL | MRVL Price Prediction) designs custom silicon and networking chips for hyperscaler data centers. The portfolio spans custom AI XPUs, electro-optics, PAM DSPs, and DCI modules, and the company pays a small $0.06 quarterly dividend, an oddity for a stock acting like pure AI growth. CEO Matt Murphy has spent the past year telling investors that AI now represents the majority of data center revenue, and that custom AI design activity sits at an all-time high with over 50 opportunities across more than 10 customers."

"MRVL is up 130% year-to-date through May 22, 2026, and 225% over the past year. Bull cases from Forbes and Trefis sketch a path to $400. A more modest stretch target of $300 in 2026 is worth testing. Wall Street is already behind the stock. The consensus price target is at $177, which is well below the current price. Even the highest price Wall Street price target goes up to $300."

"Marvell also reported Q4 FY2026 financial results with $2.22 billion of revenue, up 22% year over year. The growth came fron the Data Center business, as expected. I would expect this revenue growth to accelerate if hyperscalers stick to their guns and keep spending more on data centers. The math for $300 per share. MRVL trades at a forward P/E of 51x on roughly $3.85 in FY2027 EPS."

"If custom XPU ramps and operating leverage push FY27 EPS toward $4.00, $300 implies about 75x forward earnings. Rich, but defensible for a company growing revenue at ~40% annually. The $400 framework requires the same EPS trajectory plus multiple expansion to roughly 100x, or"

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