Benchmark reiterates Marvell stock Buy rating, $95 target

Friday’s trading session saw Marvell Technology Group Ltd . (NASDAQ:MRVL) shares dip approximately 3% in after-hours activity, with the stock trading at $59.73. According to InvestingPro data, the company appears slightly undervalued based on its Fair Value analysis. Benchmark analyst Cody Acree maintained a Buy rating and a $95.00 price target on the company’s stock, despite the market’s lukewarm reaction to Marvell’s latest financial results and forward-looking guidance. With analyst targets ranging from $60 to $133, and a consensus "Strong Buy" rating, Wall Street remains optimistic about the company’s prospects. The response contrasted with the positive market reception to Nvidia (NASDAQ:NVDA)’s impressive performance disclosed the previous day.

Marvell’s recent earnings report highlighted a year-over-year revenue increase of 63%, with its Data Center business experiencing a 76% surge in the same period. These figures are comparable to Nvidia’s reported annual revenue growth of 69% and a 73% rise in its Data Center sales. InvestingPro analysis shows Marvell as a prominent player in the Semiconductors industry, with a robust revenue CAGR of 16% over the past five years. However, Marvell’s stock did not enjoy the same enthusiasm from investors, potentially due to the company’s modest guidance and lack of specific details regarding its quarterly AI results, other than reiterating the significance of AI as a majority contributor to its Data Center business.

Acree noted that while Marvell anticipates continued robust momentum in AI, the sequential growth in its Data Center segment has decelerated from over 20% in the latter half of the previous year to around 5.5% in the first quarter. The company’s forecast suggests expectations for mid-single-digit sequential growth in the second quarter.

Marvell’s performance in the Data Center sector, particularly in AI, aligns with broader industry trends where demand strength is fueling aggressive growth in both compute and networking. The company’s top-line improvement reflects this trend, although specifics on AI contributions were not disclosed beyond previous statements.

Investors seem to have tempered their enthusiasm for Marvell following the earnings announcement, contrasting with the more favorable investor sentiment towards Nvidia. Marvell’s stock movement in after-hours trading indicates a cautious perspective from investors, despite the company’s solid year-over-year growth metrics. InvestingPro reveals additional insights through its comprehensive Pro Research Report, showing that while the company isn’t currently profitable, analysts expect positive earnings this year with an EPS forecast of $2.83. The stock has experienced a significant decline of 31% over the past six months, potentially presenting an opportunity for investors seeking exposure to the AI semiconductor sector.

In other recent news, Marvell Technology Group Ltd. reported earnings that slightly exceeded consensus estimates, with revenues of $1.89 billion and earnings per share (EPS) of $0.62. The company also provided guidance above expectations, forecasting $2.0 billion in revenue and $0.67 EPS. Analysts at Piper Sandler raised their price target for Marvell to $95, highlighting the company’s focus on AI and its custom AI silicon program as key revenue drivers. Meanwhile, Needham adjusted their price target to $85, citing tariff uncertainties and a more conservative financial outlook. Rosenblatt Securities maintained a Buy rating with a $124 price target, emphasizing Marvell’s strong performance in AI Data Center operations and its custom ASIC business. Cantor Fitzgerald reiterated a Neutral rating with a $60 price target, acknowledging Marvell’s leadership in optics and application processors but expressing concerns about competition affecting gross margins. Oppenheimer’s analyst reaffirmed an Outperform rating and a $95 price target, noting Marvell’s partnership with Amazon (NASDAQ:AMZN) Web Services and the expected ramp-up of its Trainium products. These developments reflect the diverse perspectives of analysts on Marvell’s strategic direction and financial performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.