Chip stocks have slumped. The PHLX Semiconductor Sector Index lost more than 10% in the past week, after rising 440% over four years. Comments from the chief executives of Broadcom and Intel, who flagged funding limits on AI data centre spending, helped drive the fall. Marvell Technology (NASDAQ:MRVL) could be a buy in the dip, one analyst argues. It reported $8.2 billion in revenue for fiscal 2026, up 42%, and expects 55% to 60% annual growth through fiscal 2031, reaching $70 billion to $90 billion. If earnings per share hit $28.12 and the stock trades at 31.5 times earnings, the price could reach $885, 261% above today's. That would turn $1,000 into more than $3,600.

Marvell Technology's stock has returned 216% over the past 12 months, against about 18% for the S&P 500. Investors now pay 91.8 times trailing earnings, versus 22.3 for the index. On October 6, management set a fiscal 2031 revenue target of $70 billion to $90 billion, and shares closed up about 6%. Revenue over the latest four quarters reached $9.5 billion, up from $7.2 billion a year earlier. Fiscal Q2 2027 revenue hit a record $2.739 billion, up 37%. Trailing earnings include a one-time pre-tax gain of about $1.8 billion from the sale of its automotive Ethernet business, which will drop out after the next report. The stock has also fallen harder than the S&P 500 in all five market shocks since 2022, including a 55% drop during the 2025 tariff shock. Next, watch fiscal Q3 2027 revenue against the $3.15 billion guide, plus or minus 5%.

Marvell Technology (NasdaqGS:MRVL) has formed an Open Compute Project working group with Microsoft and Oracle to set server-level silicon security standards. The group aims to give chip vendors and major cloud operators a common hardware security model for data center servers. The company also introduced six-channel CXL-based memory expansion products, which it calls an industry first, to feed data-hungry AI accelerators in large data centers. It also announced 224G per lane copper connectivity products to increase bandwidth in next-generation AI servers. Analysts link Marvell's AI infrastructure business to guidance of $12 billion for fiscal 2027 and $18 billion for fiscal 2028, with a non-GAAP operating margin of 38% to 40%.