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On Wednesday, Citi reaffirmed its Buy rating and $96.00 price target for Marvell Technology Group Ltd . (NASDAQ:MRVL), currently trading at $65.08 with a market capitalization of $56.4 billion, ahead of the company’s earnings report scheduled for Thursday, May 29, after the market closes. The firm’s analysis suggests a potential for an earnings beat, primarily driven by strength in enterprise networking. According to InvestingPro data, the stock has shown significant volatility with a beta of 1.82, making it particularly sensitive to market movements.
Citi’s expectations are for Marvell’s data center (DC) sales to have increased by 5% quarter-over-quarter in the April quarter, aligning with consensus estimates. This follows significant growth in previous quarters, attributed to robust demand for AWS Trainium 2 ASICs. Looking ahead to the July quarter, a modest acceleration to 6% growth is anticipated, slightly above the Street’s forecast of 5%. InvestingPro analysts project strong revenue growth of 42% for fiscal year 2026, suggesting continued momentum in the company’s core markets.
The upcoming earnings report comes amid broader industry concerns over potential concentration risks associated with Marvell’s major customer, AWS. There’s particular attention on the impact of custom ASIC order variability and emerging competition expected by 2025. Citi suggests that Marvell should provide guidance for data center sales on a quarterly basis rather than annually, matching the practice of industry counterparts such as Nvidia (NASDAQ:NVDA), Broadcom (NASDAQ:AVGO), and AMD (NASDAQ:AMD).
In addition to the earnings report, Marvell is set to host a webinar on custom silicon technology on June 17. This event could provide further insights into the company’s strategies and technologies, which are critical to its growth in the competitive semiconductor industry.
Investors and analysts will be closely monitoring Marvell’s performance in the data center segment, as well as any strategic updates provided during the webinar, to gauge the company’s position and outlook in the evolving market landscape. InvestingPro analysis indicates that Marvell is currently trading slightly below its Fair Value, with 12 additional exclusive ProTips and a comprehensive Pro Research Report available for subscribers seeking deeper insights into the company’s fundamentals and growth prospects.
In other recent news, Marvell Technology Group Ltd. reported an anticipated revenue of approximately $1.875 billion for the April quarter, with projections for the July quarter expected to exceed $2.00 billion, according to JPMorgan. Stifel analysts maintained a Buy rating with a $80 price target, suggesting potential growth in data center and AI revenue. Meanwhile, Redburn-Atlantic assigned a Neutral rating with a $67 price target, citing potential risks in Marvell’s involvement with AWS Trainium chips. Cantor Fitzgerald analysts also maintained a Neutral rating, forecasting a slight outperformance in Marvell’s financial results, driven by AI Data Center growth.
Susquehanna adjusted its price target for Marvell to $90 from $110, maintaining a Positive rating but highlighting challenges in the Inphi (NASDAQ:IPHI) and custom ASIC segments. The firm noted potential variability in T2 volume deployment and competition from companies like Alchip. Despite these challenges, demand for Marvell’s data center products remains strong, supported by investments in AI.
JPMorgan reiterated an Overweight rating with a $130 price target, expecting robust demand for Marvell’s AI ASIC programs and optical DSPs. The analyst highlighted advancements in custom ASICs, including ongoing production ramps with Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT). Marvell’s AI ASIC and networking revenues could reach $4 billion this year, with future growth supported by new product cycles and cyclical improvements.
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