RBC Capital Maintains Mywell Technology Rating, Optimistic About AI Growth Prospects!

RBC Capital reiterated its outperformers rating for Mywell Technology, maintaining a price target of $360. RBC Capital expects that at the upcoming investor day event, Mywell Technology's management will explain the market size of Google's custom chip project and raise its fiscal 2029 AI revenue forecast by at least $2 billion from the current over $10 billion. Additionally, RBC Capital expects a slight increase in contributions from Microsoft's XPU business in fiscal year 2028. Mywell Technology may focus on upcoming horizontal-scale and vertical expansion opportunities for optical and switch products. Management is expected to announce 2030 targets for the total addressable market size and market share of data centers, with forecasts significantly exceeding the previously set $94 billion market size and 20% market share target for 2028. 

RBC Capital pointed out that a higher operating margin target means the potential for earnings per share could reach $15 to $20. The firm maintained its current earnings forecast but remained optimistic about the stock's performance given that revenue growth is expected to exceed 50% over the next two to three years. The company has achieved 31% revenue growth over the past twelve months, and analysts forecast a 47% revenue growth rate for fiscal year 2027.

Mywell Technology is one of the few semiconductor stocks within RBC Capital's coverage expected to achieve accelerated revenue growth in 2027 and 2028, and RBC Capital believes this outlook is sufficient to support its premium valuation. 

In other recent important developments, Mywell Technology has issued several noteworthy announcements. The company has raised its revenue outlook, with management expecting full-year revenue for 2026 to reach $12 billion, higher than the previous forecast of $11.5 billion. For 2027, revenue is expected to reach $18 billion, surpassing the previous forecast of $16.5 billion. In terms of product development, Mywell Technology plans to complete sample testing of its 2nm product by the end of 2026 and begin mass production in the second half of 2027. Additionally, Mywell Technology has expanded its chip production cooperation agreement with GlobalFoundries to boost data center semiconductor capacity. 

Market Insight:

Several analysts have also expressed their views: Oppenheimer raised Marvell's target price to $325, citing optimism about its AI growth prospects; Piper launched coverage with an overweight rating, emphasizing Marvell's strong position in the data center components sector; Cantor Fitzgerald maintained a neutral rating, expressing caution about Marvell's valuation compared to its peers. These developments fully reflect Marvell's strategic layout and market positioning.