US stock futures flounder amid tech weakness, Fed caution
On Friday, Barclays (LON:BARC) reasserted its Overweight rating on Marvell Technology Group Ltd . (NASDAQ:MRVL), maintaining a price target of $80.00. Trading at $63.73, InvestingPro analysis suggests the stock is slightly undervalued, with analyst targets ranging from $60 to $135. The semiconductor company’s recent mention of "3nm" technology in connection with Amazon (NASDAQ:AMZN) and the acquisition of wafer capacity this quarter was highlighted by the firm. The analyst suggested that Marvell and Alchip Technologies might share production at the 3nm scale, although the possibility of multiple sourcing was not discounted.
The report further mentioned that Marvell’s collaboration with Microsoft (NASDAQ:MSFT) on the next generation of XPU processors is progressing smoothly. While the company’s revenue grew 4.71% in the last twelve months, reaching $5.77 billion, there was a note of caution regarding the optical sector, where Marvell might experience lighter results in July due to increased competition in the DSP market compared to the previous year.
Barclays also pointed out that Marvell is actively repurchasing its shares and is expected to have additional funds for buybacks following the planned sale of its automotive business later in the year. Despite uncertainties surrounding market share in the ASIC segment, the firm expressed a favorable view of Marvell’s risk-reward balance at the stock’s current price of around $60.
The analyst concluded by stating that Marvell’s story on the ASIC side remains to be fully demonstrated until there is clear visibility on share dynamics. Nonetheless, Barclays’ current stance indicates a belief in the company’s potential upside.
In other recent news, Marvell Technology Group Ltd. has been the focus of several analyst reports and strategic updates. The company has reaffirmed its significant projects, including its involvement in a 3nm custom chip program with Amazon, set for commercialization in 2026. Marvell’s Data Center business showed a notable year-over-year growth of 76%, driven by the rollout of AWS Trainium 2, aligning with market expectations. Analysts from BofA Securities and Barclays have maintained positive ratings on Marvell, with price targets set at $72 and $80, respectively, reflecting confidence in Marvell’s strategic collaborations with Amazon and Microsoft.
Conversely, Wolfe Research and KeyBanc Capital Markets have adjusted their price targets for Marvell to $90, down from previous estimates, while maintaining optimistic ratings. These adjustments come amid concerns about potential revenue impacts from parallel projects involving Alchip and Amazon’s internal design team. Evercore ISI also slightly reduced its price target to $133, maintaining an Outperform rating, citing Marvell’s strong financial performance and strategic engagements with major tech companies. Marvell’s ongoing work with Microsoft on the Maia 200 and next-generation Maia 300 projects further underscores its strategic positioning in the semiconductor industry.
The company is preparing to host a virtual AI event in June 2025 to discuss its initiatives and developments in the AI space, aiming to address investor concerns and showcase its growth strategies. Despite some market uncertainties, analysts remain optimistic about Marvell’s long-term prospects, particularly in the AI and custom silicon sectors. These recent developments highlight Marvell’s strategic moves and continued focus on advancing its technology and production capabilities.
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