Investing.com -- Analysts at Benchmark and Bank of America upgraded Marvell Technology (NASDAQ: MRVL) to Buy after the chipmaker’s latest results and outlook reinforced expectations for accelerating AI-driven growth.

Marvell Technology on Thursday projected fiscal 2028 (FY28) revenue of nearly $15 billion, signaling strong demand for the company’s custom chips and interconnect products used in AI data centers. The outlook exceeded Wall Street estimates of $12.92 billion and pushed the stock up more than 11% in Friday premarket trading.

The company also lifted its fiscal 2027 outlook, now expecting revenue growth of more than 30% year over year to nearly $11 billion, up from its previous forecast of around $10 billion.

Following the release, Bank of America (BofA) lifted its rating to Buy from Neutral and the price target to $110 from $90, citing improving visibility across several key AI-related drivers.

Marvell’s latest earnings call increased confidence in the company’s “solid leverage to AI optical connectivity,” as well as the potential success of an upcoming Microsoft custom chip program and signs that the company is “turning the corner on Amazon XPU transition year,” analysts led by Vivek Arya said.

BofA lifted its longer-term forecasts, raising FY27 and FY28 sales estimates by roughly 8% and 12%, respectively, while increasing EPS projections by 15% and 12%. The bank now expects adjusted EPS of $3.82 in FY27, rising 34% year-over-year, followed by $5.43 in FY28, implying growth of about 42%.

Separately, Benchmark analyst Cody Acree also upgraded Marvell to Buy and set a $130 price target, also pointing to multiple growth drivers across its data-center and connectivity businesses.

He said the chipmaker is benefiting from “broadly accelerating demand trends, improving extended visibility,” and guidance that points to revenue and earnings significantly above consensus in the coming years.

Marvell reported fourth-quarter revenue of $2.219 billion, slightly above consensus expectations, while earnings per share of $0.80 also edged past forecasts. Data-center revenue — a key growth engine tied to AI infrastructure — reached $1.651 billion, growing 9% sequentially and 21% year-over-year.

The company guided first-quarter revenue to about $2.40 billion, implying roughly $122 million of upside versus consensus, while EPS is projected at about $0.79.

Acree highlighted several catalysts supporting the outlook, including accelerating demand for electro-optics connectivity, leadership in high-speed optical DSPs as networks move from 800G to 1.6T, stronger switching revenue, and expanding opportunities in retimers and active electrical cables.

He also expects Marvell’s custom silicon business to continue scaling, supported by engagements tied to hyperscale customers such as Amazon and Microsoft.

Despite the latest stock’s upswing, Acree says that Marvell’s valuation remains “particularly attractive versus the broader AI-semi peer complex.”