Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
On Tuesday, Marvell Technology Group Ltd . (NASDAQ:MRVL) maintained its Neutral rating and a price target of $60.00, as affirmed by analysts at Cantor Fitzgerald. With analyst targets ranging from $60 to $135 and the stock currently trading at $63.54, InvestingPro analysis suggests the stock is slightly undervalued, despite its high EBITDA multiple of 42.9x. The analysts anticipate Marvell to report a slight outperformance and upward revision in its forthcoming financial results. The company’s earnings call, scheduled for May 29, is expected to center on the projected acceleration of AI Data Center revenue, particularly due to its engagement with Amazon (NASDAQ:AMZN)’s Trainium project, and the anticipated continued expansion of its Optics business. InvestingPro data reveals the company’s revenue grew 4.71% over the last twelve months to $5.77 billion, with analysts forecasting 42% growth in the coming fiscal year.
While no updates are foreseen regarding Marvell’s fiscal year 2026 AI revenue goal, which is projected to exceed $2.5 billion, the analysts foresee a reiteration of revenues well surpassing the planned figures. Current estimates by Cantor Fitzgerald project roughly $3.5 billion in revenue for Marvell by calendar year 2025. The broader outlook for Marvell includes significant attention on the company’s design wins with Amazon and Microsoft (NASDAQ:MSFT), which are seen as key indicators of revenue growth into calendar year 2026 and further.
The market’s uncertainty surrounding future Custom Silicon wins adds a layer of complexity to Marvell’s outlook. As a result, there is a high level of interest in the company’s confirmed design wins and the potential for sustained revenue growth. However, with an AI Custom Silicon Webinar scheduled for June 17th, Marvell’s management may postpone any detailed commentary on this topic until the event.
In summary, Cantor Fitzgerald’s analysts expect Marvell to slightly exceed expectations in the near term, with particular growth driven by its AI Data Center business. The company’s long-term revenue trajectory, especially in relation to AI and Custom Silicon initiatives, is anticipated to be a focal point for investors and analysts alike, with more information likely to be shared in the upcoming webinar.
In other recent news, Marvell Technology is preparing to report its earnings, with analysts projecting April quarter revenues to align with prior guidance at approximately $1.875 billion. JPMorgan anticipates a growth trajectory, forecasting July quarter revenues to exceed $2 billion, marking a 7% increase from the previous quarter. Susquehanna has adjusted Marvell’s price target to $90, maintaining a Positive rating despite highlighting potential challenges in the company’s Inphi (NASDAQ:IPHI) and custom ASIC segments. Meanwhile, Melius Research downgraded Marvell from Buy to Hold, keeping the price target at $66, due to unmet expectations in custom silicon momentum and anticipated growth.
Morgan Stanley (NYSE:MS) reaffirmed its Equalweight rating and a $90 price target, addressing concerns about Marvell’s custom silicon projects with major clients like Microsoft and Amazon. The firm clarified that Marvell retains its design contract with Microsoft for Maia 2, despite competition from Broadcom (NASDAQ:AVGO). Analysts from JPMorgan are optimistic about Marvell’s AI ASIC and optical products, projecting AI ASICs and networking revenues to reach $4 billion this year. Berenberg, while discussing broader semiconductor industry trends, did not specifically address Marvell but noted a cautiously optimistic outlook for semiconductor capital expenditure growth through 2026. These developments reflect a mix of cautious optimism and competitive challenges for Marvell in the current market landscape.
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