Here's Why This Tech Stock Could Be the Best Buy of the Summer

Marvell Technology (NASDAQ: MRVL) has been a top performer on the stock market in 2026, rising an incredible 107% as of this writing. This impressive rally in Marvell stock has been fueled by the growing shift toward custom artificial intelligence (AI) processors, which are used by hyperscalers and AI companies to run inference workloads cost-effectively in data centers.

You may be wondering why I think that this tech stock could be one of the best buys of this summer, following its phenomenal gains. That's because Marvell is scratching the surface of a tremendous growth opportunity, and its upcoming results are likely to give the stock a nice shot in the arm.

Image source: The Motley Fool.

Marvell Technology's growth trajectory is likely to improve

Marvell will release its fiscal 2027 first-quarter results on May 27. The company is anticipating $2.4 billion in revenue along with adjusted earnings of $0.79 per share. That points toward a year-over-year increase of 27% in revenue, along with an identical increase in the bottom line. However, there is a good chance that Marvell's revenue and earnings will exceed expectations.

That's because the strong demand for Marvell's data center processors encouraged the company to significantly increase its guidance in March. It increased its fiscal 2027 revenue guidance to $11 billion from an earlier estimate of $9.5 billion, issued in September 2025. Marvell's full-year guidance suggests that its revenue is on track to jump by 34% over fiscal 2026 levels.

Clearly, Marvell anticipates its revenue growth accelerating each quarter this year. What's more, the company is forecasting its revenue growth to approach 40% in fiscal 2028. Marvell's recent acquisitions of Celestial AI and XConn Technologies, which provide data center interconnect solutions and switching products, will contribute $250 million to its top line in fiscal 2028.

Additionally, the company notes that it has more than 20 design wins in the bag for its custom AI processors, which are going into production in fiscal years 2028 and 2029. So, there is a good chance that Marvell's market share in custom AI processors will increase to 20% to 25% in the coming years, according to Bloomberg.

Assuming Marvell can corner a fourth of this market by 2033, its custom AI revenue could increase to almost $30 billion by 2033, based on Bloomberg's $118 billion revenue estimate for the overall market. As such, don't be surprised to see Marvell's healthy top-line growth continue beyond the next three fiscal years.

Data by YCharts

The company's healthy earnings growth potential suggests more upside

Marvell is trading at 44 times forward earnings, almost in line with the tech-focused Nasdaq Composite index's earnings multiple of 42.3. Importantly, Marvell's solid revenue growth is poised to translate into big bottom-line gains.

Data by YCharts

The potential long-term custom AI revenue target of $30 billion discussed above suggests that Marvell's terrific earnings growth is sustainable over the long term. Assuming it can grow its earnings at 20% a year beyond the next three years, its bottom line could reach $10.91 per share after five years (using fiscal 2029's earnings as the base).

If Marvell trades at even 30 times earnings at that time, its stock price could reach $327, a potential increase of 85% over current levels. Of course, this AI stock could deliver bigger gains if the market rewards it with a premium valuation, which is why investors should consider buying it before it moves higher.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Marvell Technology. The Motley Fool has a disclosure policy.