American tech firm Marvell Technology Inc. has upgraded its long-term growth targets banking on the growth of cloud-based products, the company announced in a filing.
- Marvell has hiked its incremental revenue for its Cloud design to $800 million by the fiscal year 2025 to 2026, from the $400 million in 2024. It expects to double the end-market for Cloud, 5G, and auto to $1.5 billion with above-market growth.
- The long-term growth target is now expected at 15% to 20%, up from the earlier 10% to 15%, and gross margin between 64% to 66%. Operating margins are predicted between 38% to 40%.
- Marvell said it is ramping up its 5G services, with the next large opportunity seen in the Cloud space, as it expects the next era to involve the transition to cloud-optimized compute.
A number of financial services firms have also upgraded their rating on Marvell with either buy or outperform and the price target ranging from $75 to $83. MRVL is up 5.01%.