Marvell Technology (MRVL) can sustain 40% and above growth for the next three years on account of strong artificial intelligence growth, optical connectivity leadership, and expanding custom pipeline, RBC Capital Markets said in a note Tuesday.

With networking growth outpacing compute driven by agentic AI and inferencing workloads, Marvell's data center revenue is on track for over 50% growth this year and next, RBC said.

Optical demand remains robust with visibility extending well into 2027, RBC said, adding that scale-across is emerging as an incremental driver for 2027 while scale-up should unlock the multi-billion dollar serviceable addressable market.

Marvell's custom XPU business is tracking well with room for meaningful upside to 2027. Amazon's (AMZN) cloud computing platform Amazon Web Services is the primary anchor and continues to fare well while second XPU customer Microsoft (MSFT) remains on track for volume ramp in 2027, according to the note.

RBC maintained its outperform rating with a $360 price target.