EU and US could reach trade deal this weekend - Reuters
Friday, Cantor Fitzgerald reiterated a Neutral rating and a $60.00 price target on Marvell Technology Group Ltd . (NASDAQ:MRVL). According to InvestingPro data, the stock currently trades at an EV/EBITDA multiple of 33.4x, reflecting high growth expectations. While analyst targets range from $60 to $133, the company maintains a moderate debt level with a debt-to-equity ratio of 0.3. The semiconductor company reported earnings that slightly exceeded consensus estimates, with revenues of $1.89 billion and earnings per share (EPS) of $0.62, compared to the consensus of $1.88 billion and $0.61 EPS. The company also provided guidance above expectations, forecasting $2.0 billion in revenue and $0.67 EPS versus the anticipated $1.98 billion and $0.66 EPS. This aligns with InvestingPro analysis, which indicates strong revenue growth potential with a 42% forecast for FY2026 and a five-year revenue CAGR of 16%.
Marvell’s earnings call focused on its AI Custom Silicon business, where management expressed confidence in their current positioning with Amazon (NASDAQ:AMZN)’s Trainium 2 and Maia 200, as well as for future products. They indicated that Marvell has secured wafer/application processor capacity for Amazon’s next-generation 3-nanometer technology, expected to ramp up in 2026. Additionally, management anticipated revenue growth from Amazon in calendar years 2026 and 2027.
However, concerns were raised about the potential for customers to explore multiple suppliers due to high demand from large cloud service providers, which could affect the volume of ASICs that investors might expect Marvell to produce in 2026 and beyond. This uncertainty, along with the possibility of increased competition affecting gross margins, was noted as a factor that could continue to impact investor sentiment.
Despite these concerns, Cantor Fitzgerald acknowledged Marvell’s leadership in Optics, Co-Packaged Optics (CPO), High Bandwidth (NASDAQ:BAND) Memory (HBM), and application processors, which are expected to be integral in next-generation devices. The firm expressed ongoing concerns about the long-term viability of Marvell’s Custom Silicon business.
Investors and analysts are looking forward to the Custom AI investor event scheduled for June 17th, where Marvell’s management is expected to provide more details and insights into the future of the company’s AI Custom Silicon segment and its potential for sustained growth. For deeper insights into Marvell’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis, including 12 additional ProTips and detailed valuation metrics in our exclusive Pro Research Report, part of our coverage of over 1,400 US stocks.
In other recent news, Marvell Technology Group Ltd. has garnered attention following its latest financial results and strategic developments. Oppenheimer analyst Rick Shafer reiterated an Outperform rating with a $95 price target, highlighting Marvell’s partnership with Amazon Web Services and the anticipated growth of its AI sector, which now accounts for a significant portion of its revenue. Barclays (LON:BARC) maintained its Overweight rating with an $80 target, noting Marvell’s advancements in 3nm technology and its collaboration with Microsoft (NASDAQ:MSFT) on next-generation processors. Meanwhile, BofA Securities confirmed a Buy rating with a $72 target, emphasizing Marvell’s robust project pipeline, including a notable 3nm custom chip program with Amazon set for 2026.
Wolfe Research adjusted its outlook, lowering the price target to $90 from $115, while maintaining an Outperform rating. The firm expressed concerns about potential revenue impacts from a parallel project involving Amazon and Alchip but remains optimistic about Marvell’s AI business. Barclays and BofA Securities both highlighted Marvell’s strategic share repurchase plans, bolstered by the anticipated sale of its automotive division. Analysts are particularly focused on Marvell’s custom silicon initiatives, with an upcoming event in June 2025 expected to provide further insights into the company’s strategies and growth prospects. These developments reflect Marvell’s ongoing efforts to strengthen its position in the semiconductor industry, particularly in AI and ASIC markets.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.