Marvell Technology has gained more than 200% in the past 12 months. It just reported record revenue, guided above expectations, and told investors that growth would accelerate every single quarter through the rest of the fiscal year.

For Barclays analyst Tom O’Malley, that was enough to nearly double his price target in a single note.

What Barclays changed and the numbers driving it

O’Malley raised his price target on Marvell Technology (MRVL) to $275 from $150 and maintained his overweight rating following the company’s Q1 FY2027 earnings release on May 27, according to TipRanks. That is an 83% increase in a single note, and the rationale is specific.

Barclays cited Marvell’s upward revision to its outlook for fiscal 2027 and 2028 as the primary driver. The company expects its data center business to grow 50% in FY2027 and 55% in FY2028.

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Interconnect revenue is projected to rise more than 70% year over year in FY2027. Custom silicon revenue is expected to exceed $10 billion by 2028.

Marvell’s own management commentary made Barclays’ case easier to argue. The company said revenue growth is expected “to continue accelerating each quarter” for the rest of the fiscal year.

For an analyst trying to justify an 83% target increase, that is a useful data point.

What Marvell’s Q1 results actually showed

Q1 FY2027 revenue came in at $2.42 billion, up 9% sequentially. The data center segment led the way with 11% sequential growth, Investing.com reported. The Q2 guidance range came in modestly above Wall Street estimates.

Marvell has posted 42% revenue growth over the trailing 12 months. Analysts are now forecasting 33% revenue growth for FY2027.

The stock has gained 208% over the past year, TipRanks confirmed. It was trading at approximately $196.32 with a market cap of $171 billion at the time of the note.

Marvell Technology has gained more than 200% in the past 12 months.

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Why Barclays is so focused on data center and custom silicon

The Barclays thesis is not about Marvell as a general semiconductor company. It is specifically about what happens to Marvell’s revenue when hyperscaler data center spending stays elevated and custom silicon demand accelerates alongside it.

Marvell’s custom ASIC business has become one of the most closely watched revenue lines in the AI infrastructure trade. Large cloud providers are increasingly commissioning custom chips for specific workloads rather than buying general-purpose accelerators.

Marvell is one of the companies positioned to benefit from that shift.

The data center interconnect story is the second leg. As AI training and inference clusters scale up, the optical networking and high-speed interconnect products that link those systems together become more important.

Marvell’s interconnect revenue growth of more than 70% in FY2027 is what drove Barclays’ bull case.

Key figures from Barclays’ May 27 Marvell note:

• New target: $275, raised from $150; overweight maintained; analyst Tom O’Malley; 83% increase in a single note, according to TipRanks
• Data center outlook: 50% growth in FY2027, 55% in FY2028; Interconnect revenue up more than 70% year over year in FY2027; custom silicon revenue to exceed $10 billion by 2028, according to Investing.com
• Q1 FY2027 results: Revenue $2.42 billion, up 9% sequentially; data center segment up 11% sequentially; Q2 guide modestly above consensus, Investing.com confirmed
• Marvell stock: Up 208% over the past year; trading at approximately $196.32; market cap $171 billion, according to TipRanks
• Management guidance: Revenue growth expected to “continue accelerating each quarter” through the rest of FY2027; 42% trailing 12-month revenue growth, Investing.com confirmed
• Concurrent calls: Deutsche Bank raised to $240 from $120, buy; Goldman Sachs raised to $180; KeyBanc raised to $260 from $130, overweight, according to Investing.com

What the Barclays call means for investors watching Marvell

A raised target of $275 from $196.32 implies approximately 40% upside from where the stock was trading at the time of the note. That is a meaningful gap for a stock already up 208% in a year, and it reflects Barclays’ conviction that the multi-year AI infrastructure framework Marvell laid out in its earnings call is credible.

The risk embedded in that target is execution. The $10 billion custom silicon milestone by 2028 and the 55% data center growth in FY2028 are forward projections that depend on hyperscaler capex staying elevated, customer relationships deepening, and Marvell successfully ramping new products on schedule.

If any of those variables slips, the numbers underlying the $275 target look different.

O’Malley is the same Barclays analyst who nearly doubled his SanDisk target earlier this week on a similar contracted-revenue argument. Back-to-back aggressive raises on semiconductor names tied to AI infrastructure signal that Barclays sees the current cycle as having more duration than the market consensus currently reflects.

Whether Marvell’s results over the next two quarters validate that view is the question investors need to track.

Related: BofA and Goldman Sachs reset Marvell stock price targets