US stock futures flounder amid tech weakness, Fed caution
Friday - BofA Securities analyst Vivek Arya confirmed a Buy rating and a $72.00 price target for Marvell Technology Group Ltd . (NASDAQ:MRVL), a major player in the semiconductor industry. According to InvestingPro data, the stock currently trades at $63.73, with analyst targets ranging from $60 to $135, suggesting significant upside potential despite recent volatility. Arya highlighted Marvell’s reaffirmation of significant projects, including its involvement in a 3nm custom chip program with Amazon (NASDAQ:AMZN), set for commercialization in calendar year 2026. Marvell is expected to develop a critical chip, separate from Alchip’s efforts, which could have a more pronounced impact in the second half of 2026.
In addition to the Amazon project, Marvell is also engaged in multiple generations of custom chip programs with Microsoft (NASDAQ:MSFT), with the first expected to launch in 2026. Arya suggests that while near-term earnings per share (EPS) revisions may be minimal, keeping the stock stable in the short term, the company’s confirmed project pipeline could bolster investor confidence in Marvell’s projected sales growth of over 20%. InvestingPro data shows revenue growth forecast of 42% for FY2026, with the company maintaining a moderate debt level and healthy current ratio of 1.54x.
The analyst event scheduled for June 17, 2025, is anticipated to provide further details and potentially reinforce investor confidence in Marvell’s growth trajectory. Arya’s projections include a significant 32% year-over-year increase in Marvell’s overall Artificial Intelligence (AI) revenue for calendar year 2026, reaching approximately $5 billion. This includes an expectation of over 50% year-over-year growth in Marvell’s Application-Specific Integrated Circuit (ASIC) business, leading to revenues of about $3 billion, a figure that outpaces both merchant and ASIC industry peers.
Arya’s statement underscores the strategic moves Marvell is making in the semiconductor space, particularly in the AI and ASIC markets, and maintains a positive outlook for the company’s financial performance in the coming years. The reiterated Buy rating and $72.00 price target reflect BofA Securities’ continued confidence in Marvell’s business model and market position. While currently showing negative earnings, InvestingPro analysis indicates expected profitability this year, with 11 additional ProTips available to subscribers through the comprehensive Pro Research Report, offering deeper insights into Marvell’s financial health and growth trajectory.
In other recent news, Marvell Technology Group Ltd. has seen multiple adjustments to its stock price target by major analyst firms. Wolfe Research and KeyBanc both reduced their targets to $90, citing concerns about Marvell’s future revenue streams and competitive pressures, but maintained positive ratings on the stock. Wolfe Research remains optimistic about Marvell’s AI business prospects, while KeyBanc highlighted strong growth in Marvell’s Data Center business and ongoing projects with AWS. Evercore ISI adjusted its price target slightly to $133, maintaining an Outperform rating and expressing confidence in Marvell’s financial performance and growth potential in the AI sector.
Raymond (NSE:RYMD) James also lowered its price target to $90, maintaining an Outperform rating, and noted Marvell’s solid engagement with AWS and Microsoft. The firm pointed out that Marvell’s Data Center growth was strong, with a 76% increase year-over-year. Meanwhile, Morgan Stanley (NYSE:MS) raised its price target to $73, maintaining an Equalweight rating and noting a positive long-term outlook despite recent challenges. The firm emphasized Marvell’s potential in the AI sector, particularly in the optical segment.
These developments come as Marvell plans a virtual AI event on June 17, 2025, to address investor concerns and discuss its AI initiatives. The event is seen as an opportunity for Marvell to showcase its strategies and reassure stakeholders about its growth trajectory.
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