Nucor earnings beat by $0.08, revenue fell short of estimates
On Friday, KeyBanc Capital Markets adjusted its price target for Marvell Technology Group Ltd (NASDAQ:MRVL), reducing it to $90 from the previous $115, while maintaining an Overweight rating on the shares. The adjustment followed Marvell’s first-quarter results and second-quarter guidance, which aligned with market expectations. With analyst targets ranging from $60 to $135 and the stock currently trading at $63.73, InvestingPro analysis indicates the stock is currently fairly valued, with 12 more exclusive insights available to subscribers.
Marvell’s Data Center business performance matched projections and saw a significant year-over-year growth of 76%, propelled by the rollout of AWS Trainium 2. This growth comes as the company maintains overall revenue growth of 4.71% and a market capitalization of $55.05 billion. KeyBanc’s analyst highlighted Marvell’s reaffirmation of expected revenue growth from its custom AI ASIC segment at AWS in fiscal years 2026 and 2027. Additionally, Marvell remains actively involved with AWS in developing Trainium 3 and 4, securing necessary resources such as 3nm wafer and advanced packaging capacity.
The company also reiterated its achievement of a design win with Microsoft (NASDAQ:MSFT) for the Maia 200 and is currently engaged in the next-generation Maia 300 project. Despite competition, where Alchip and Annapurna are believed to have won the Trainium 3, KeyBanc sees various opportunities for Marvell to expand its business.
In light of the recent updates and strategic engagements, KeyBanc has fine-tuned its estimates for Marvell and revised its price target accordingly, while reaffirming its positive Overweight stance on the stock. Marvell has also announced that, due to canceling its in-person event, it will be hosting a virtual AI event on June 17, 2025, to further discuss its initiatives and developments in the AI space.
In other recent news, Marvell Technology Inc. reported its financial results for the first quarter of fiscal year 2026, surpassing both earnings and revenue expectations. The company achieved earnings per share (EPS) of $0.62, slightly above the forecast of $0.61, and reported revenue of $1.9 billion, exceeding the expected $1.88 billion. Despite this positive performance, analysts from Evercore ISI, Raymond (NSE:RYMD) James, and Morgan Stanley (NYSE:MS) have made adjustments to their price targets for Marvell. Evercore ISI reduced its target to $133 while maintaining an Outperform rating, citing Marvell’s strong financial performance and its strategic engagements with major tech companies like Amazon (NASDAQ:AMZN) and Microsoft.
Raymond James lowered its price target from $110 to $90, also maintaining an Outperform rating, and highlighted Marvell’s ongoing projects with Amazon Web Services and Microsoft. Morgan Stanley increased its price target from $70 to $73, maintaining an Equalweight rating, and expressed a positive outlook for Marvell’s long-term performance despite recent challenges. Marvell’s strategic focus on AI and data center technologies has positioned it well in the market, with strong year-over-year revenue growth of 63% driven by demand in these sectors. The company has also announced a partnership with NVIDIA (NASDAQ:NVDA) and launched new technologies, further strengthening its competitive position.
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