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Investing.com - Evercore ISI reduced its price target on Marvell (NASDAQ:MRVL) to $122.00 from $133.00 on Friday, while maintaining an Outperform rating on the semiconductor company’s stock. According to InvestingPro data, analysts maintain a strong bullish consensus on Marvell, with price targets ranging from $64.31 to $133.00.
The price target adjustment follows Marvell’s quarterly earnings report that met expectations and provided earnings per share guidance slightly above consensus for the October quarter. Despite these results, Marvell shares fell approximately 11% in after-hours trading. InvestingPro analysis shows the company has achieved impressive revenue growth of 37.05% over the last twelve months, with analysts expecting continued profitability this year.
The negative market reaction stemmed from the company’s outlook for its Custom AI revenue, which Evercore estimates will decline by 18% quarter-over-quarter in the October period. This projection surprised investors given the current strong cloud capital expenditure environment.
Evercore noted that Marvell’s custom compute business remains in early stages with a concentrated customer base, which can lead to uneven performance. The firm expects the custom AI business to return to its growth trend by the January 2026 quarter.
The research firm highlighted that Marvell has secured approximately 20 custom design wins expected to ramp up over the next one to two years, with the company reaffirming its plan to grow its data center share to 20% of a $94 billion total addressable market by 2028.
In other recent news, Marvell Technology reported mixed quarterly results, with revenue projections for the upcoming quarter falling short of expectations at $2.06 billion compared to the anticipated $2.11 billion. Despite this, the company slightly surpassed earnings per share estimates, projecting $0.74 against the consensus of $0.72. Analysts have responded with varied ratings: Benchmark maintained a Buy rating with a $95 price target, citing temporary inventory digestion issues with a major customer, Amazon. Cantor Fitzgerald reiterated a Neutral rating with a $75 price target due to the mixed outlook. Rosenblatt also maintained a Buy rating but lowered its price target from $124 to $95, noting delays in application-specific integrated circuits (ASIC). KeyBanc kept an Overweight rating and a $90 price target, despite acknowledging weaknesses in Marvell’s data center segment. Meanwhile, Melius Research reduced its price target to $70 from $76, expressing concerns over AI growth. These developments reflect the diverse analyst perspectives on Marvell’s current financial health and future prospects.
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