RBC Just Lifted Marvell's Target From $115 to $170 After Amazon's Blockbuster Anthropic Deal

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Marvell Technology (NASDAQ:MRVL | MRVL Price Prediction) stock just earned a bullish endorsement from RBC Capital Markets, which raised its price target from $115 to $170 while maintaining its Outperform rating. The catalyst: Amazon (NASDAQ:AMZN) struck a landmark deal with Anthropic that includes up to 5 gigawatts of new AWS capacity, and RBC sees that as a direct tailwind for Marvell as a key AWS supplier.

RBC says the announcement is a material positive for AWS suppliers and that the firm now has higher conviction in 2027 estimates as well as longer-term growth expectations. For investors watching the AI infrastructure buildout, this demand signal matters.

The Analyst's Case

RBC's thesis is straightforward: when Amazon commits to powering Anthropic's AI ambitions at a scale of up to $25 billion in investment and over $100 billion in AWS spending over the next decade, infrastructure suppliers win big. Marvell provides custom silicon and networking solutions that make hyperscale AI compute possible.

The Amazon-Anthropic agreement includes access to Trainium2, Trainium3, and Trainium4 chips alongside Graviton CPUs, all requiring the high-speed interconnect and custom ASIC work where Marvell competes. RBC's conviction in the 2027 growth outlook reflects how durable this demand cycle looks.

Company Snapshot

Marvell designs custom silicon, electro-optics, and interconnect solutions for AI data centers. In its most recent quarter, revenue reached $2.074 billion, up 37% year over year, with data center revenue of $1.518 billion representing 73% of the total. Non-GAAP EPS came in at $0.76, compared to $0.43 in the prior year.

Management guided for full-year FY2026 revenue growth exceeding 40% and noted that data center growth expectations for the next fiscal year are "now higher than prior expectations." Marvell Technology CEO Matt Murphy observed that custom AI design activity is at an all-time high, with over 50 new opportunities across more than 10 customers.

Why the Move Matters Now

Marvell stock has risen 209% over the past year to a current price of $152.48. The new $170 RBC target sits above current analyst consensus of $126.95, signaling that RBC sees the Amazon-Anthropic deal as a structural demand driver, not just a short-term catalyst.

Amazon's planned approximately $200 billion in capex in 2026, primarily AI-related reinforces that this is a multi-year structural demand story. Marvell's market cap stands at roughly $121.52 billion, and with a forward P/E of 26x, the valuation reflects high expectations but is grounded in real earnings acceleration.

What It Means for Your Portfolio

If you believe Amazon's AI infrastructure spending will keep compounding and custom silicon suppliers will capture a growing slice of that pie, Marvell stock deserves a serious look. The RBC upgrade adds credibility to a bull case already supported by strong fundamentals and a deepening customer relationship with one of the world's largest cloud providers.

That said, the stock has moved sharply, insider selling activity has been elevated recently, and the valuation leaves little room for execution missteps. Cautious investors may want to review Marvell's broader AI infrastructure positioning before sizing up a position. RBC's $170 target reflects a well-reasoned bet that the Amazon-Anthropic deal is just the beginning of a much larger AI capacity wave.