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On Thursday, KeyBanc Capital Markets revised its price target on Marvell Technology Group Ltd . (NASDAQ: NASDAQ:MRVL) shares, reducing it to $115 from the previous target of $135. Despite this change, the firm maintained its Overweight rating on the company’s stock. Currently trading at $90.14, Marvell’s stock has seen a significant 36% gain over the past six months, though it has faced some headwinds recently. According to InvestingPro analysis, the stock appears to be trading above its Fair Value, with analysts maintaining an overall bullish consensus.
Marvell recently reported its fourth fiscal quarter results, which showed substantial revenue growth, particularly in its Data Center segment. The company’s Data Center revenue reached $1.37 billion, a sequential increase of 24% and a year-over-year surge of 78%. While these figures were as expected, they still represented significant growth. The company’s overall revenue reached $5.77 billion in the last twelve months, with a healthy revenue growth rate of 4.71%.
The company addressed concerns regarding its market position with Amazon (NASDAQ:AMZN) Web Services (AWS), particularly about the Trainium project. Marvell clarified that it anticipates revenue from its custom silicon for AWS, known as XPU, to grow in fiscal years 2026 and 2027. Additionally, Marvell confirmed that it has secured the next-generation XPU project at AWS and reiterated its expectation to far exceed its artificial intelligence revenue target of $2.5 billion in fiscal year 2026.
This information aligns with KeyBanc’s perspective that Marvell has succeeded in securing the next-generation Trainium 2.5 (Ultra) project, although it has conceded the Trainium 3 project to Annapurna Labs, which is part of AWS, and Alchip.
KeyBanc’s analyst expressed confidence in Marvell’s performance and future prospects. The firm is adjusting its estimates and has also introduced projections for fiscal year 2027. Despite the lowered price target, KeyBanc’s stance on Marvell remains positive, as reflected in the maintained Overweight rating. With a market capitalization of $78 billion and analyst targets ranging from $90 to $188, Marvell continues to attract investor attention. For deeper insights into Marvell’s valuation and growth prospects, including exclusive ProTips and comprehensive financial analysis, visit InvestingPro.
In other recent news, Marvell Technology Group Ltd. reported financial results that modestly exceeded analyst expectations, with a 1.0% increase in revenue and a slight rise in non-GAAP EPS. Stifel analysts responded by lowering Marvell’s price target from $130 to $115, maintaining a Buy rating, citing the company’s leadership in AI and data center silicon. Barclays (LON:BARC) also adjusted its price target to $130, retaining an Overweight rating, noting that Marvell’s performance did not meet the elevated expectations set by its peers in the Amazon supply chain. Jefferies reduced their price target to $100 while maintaining a Buy rating, emphasizing Marvell’s ongoing relationship with Amazon and future growth prospects in the fiscal years 2026 and 2027.
Citi analysts revised Marvell’s price target to $122, keeping a Buy recommendation, and highlighted the company’s confidence in the ramp-up of custom ASIC products for Tier 2 and Tier 3 customers. Wolfe Research cut the price target to $115, maintaining an Outperform rating, and addressed concerns about Marvell’s market position, particularly regarding a next-generation project. Marvell’s management dispelled worries about losing a project to a competitor, confirming ongoing engagement with a key customer for the next generation of a particular XPU. Analysts across the board noted Marvell’s focus on custom silicon and its strategic partnerships, particularly with Amazon, as key drivers of its long-term growth and market positioning.
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