Prediction: This artificial intelligence (AI) chip stock will make a big move in October (hint: it’s not a micron)
Micron technology reported impressive results for the fourth quarter of fiscal 2026 on September 30, indicating that the artificial intelligence (AI) infrastructure boom is alive and well.
Micron makes memory and storage chips that play a critical role in AI data centers by transporting and storing the large volumes of data needed to train models and run inference applications. So it was no surprise to see the company’s results and guidance beat expectations, setting the stage for Micron shares to rise further this month.
However, there is another key AI chip company that is preparing to hold a major event in October. Marvell Technology (MRVL +1.57%) has scheduled its investor day for October 6. Let’s take a look at why this date could be important for Marvell investors and spark a rally in the company’s shares.
Image source: The Motley Fool.
Marvell Technology expected to raise guidance on October 6
Marvell Technology makes custom AI processors and networking chips. Both of these markets have seen incredible growth. Counterpoint Research estimates that shipments of custom AI processors will triple between 2024 and 2027. Goldman Sachs notes that networking will be the next big bottleneck in the AI infrastructure market. The investment bank expects optical networking market revenues to grow more than 10-fold between 2026 and 2028.
Today’s change
(1.57%) $4.21
Current price
$272.29
Key Data Points
Daily scope
$271.59 -$280.00
52 week range
$70.69 -$329.88
Volume
15.9 million
Average flight
22.3 million
Gross margin
51.42%
Dividend yield
0.09%
These catalysts explain why Marvell Technology has consistently raised its guidance in recent quarters. The semiconductor specialist raised its revenue forecast for fiscal 2027 to $12 billion, up from $11.5 billion previously estimated in August. It also increased its fiscal 2028 revenue forecast by $1.5 billion, to $18 billion.
It’s worth noting that Marvell had reported $11 billion in revenue for fiscal 2027 when it reported its fourth-quarter fiscal 2026 results in March of this year. Its forecast for fiscal 2028 then stood at $15 billion, following an upward revision of $2 billion from the December 2025 forecast. Investment banking firm RBC Capital Markets expects Marvell to raise its forecast again during its investor day presentation on October 6.
Specifically, RBC expects Marvell to increase its AI revenue guidance for fiscal 2029 by at least $2 billion from the current estimate of $10 billion. Additionally, RBC expects Marvell to significantly increase its total addressable market (TAM) forecast and market share estimates for 2030 on October 6.
The investment bank also estimates that an increase in Marvell’s operating margins could propel its earnings per share (EPS) to between $15.00 and $20.00 in the long term. This indeed seems possible, given that Marvell’s earnings are expected to increase 48% in the current fiscal year to $4.21, followed by a significant acceleration in fiscal 2028 and another significant jump in fiscal 2029.
MRVL EPS estimates for current fiscal year data by YCharts
If Marvell delivers stronger guidance for the next two fiscal years and increases its 2030 TAM estimate, driven by healthy growth in custom AI processors and networking chips, it could regain investor confidence again.
Although this AI stock has surged just over 3 times in 2026, its shares have fallen 16% after hitting a 52-week high on June 18. Savvy investors should consider capitalizing on this pullback, as favorable comments from management could send Marvell on a bull run. Additionally, strong long-term growth prospects indicate that Marvell could make investors significantly richer.
Stock can double again
You may be wondering if Marvell is worth buying after its stunning rally in 2026. The stock is expensive, at 86 times current earnings and 62 times forward earnings. However, we’ve already seen that its earnings growth is poised to accelerate.
Assuming Marvell’s earnings range between $15.00 and $20.00 per share in 2030, which seems entirely possible given that its earnings per share could reach $10.45 in fiscal 2029 (which ends in January 2029), its shares could jump significantly from current levels. For example, EPS of $17.50 could push Marvell stock to $525, even though it trades at 30 times earnings after four and a half years.
That’s currently nearly double Marvell’s stock price. So, investors looking to buy a high-growth stock during a downturn may consider buying Marvell Technology ahead of its investor day, during which it could make a big move.
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