Bank of America just raised its EUR/USD forecast
On Thursday, Jefferies maintained a Buy rating on Marvell (NASDAQ:MRVL) but reduced the price target from $120.00 to $100.00. Trading at $90.14, InvestingPro analysis suggests the stock is currently overvalued, despite showing a strong 36% gain over the past six months. The adjustment follows Marvell’s latest financial results, which showed a slight increase in estimates but failed to meet the high expectations for the quarter.
The firm expressed that while the results were underwhelming compared to the heightened anticipations for the second turn, Marvell’s recent affirmations signal confidence in their future prospects. With revenue of $5.77 billion in the last twelve months and a 4.7% growth rate, the company emphasized its ongoing relationship with Amazon (NASDAQ:AMZN), indicating that the revenue from their Amazon ASIC project is expected to grow in the fiscal years 2026 and 2027, with potential expansion thereafter.
This outlook is underpinned by a multi-generational deal Marvell signed with Amazon in December, which Jefferies believes positions Marvell favorably to succeed in the next generation of 3nm technology, contingent on delivering working silicon on schedule.
The analyst from Jefferies highlighted the importance of Marvell’s commitment to not losing ground in the upcoming 3nm generation. The company’s reiteration of growth in its Amazon ASIC revenue stream was seen as a positive indicator of its long-term trajectory.
Marvell’s assurances about its Amazon ASIC revenue and the potential for growth in the coming years are particularly noteworthy following its multi-generational agreement with Amazon. This deal is a cornerstone of Marvell’s strategy, as the company aims to deliver on its promises and maintain its competitive edge in the semiconductor industry. According to InvestingPro, analysts expect the company to return to profitability this year, with projected earnings per share of $1.57 for FY2026. For deeper insights into Marvell’s financial health and growth prospects, including 8 additional ProTips and comprehensive valuation metrics, check out the detailed Pro Research Report available on InvestingPro.
In other recent news, Marvell Technology reported its Q4 FY2025 earnings, exceeding analyst expectations with an earnings per share (EPS) of $0.60 compared to the forecasted $0.59, and revenue of $1.82 billion, surpassing the expected $1.80 billion. Despite these positive results, the company’s stock experienced a decline, reflecting investor concerns. Marvell’s management emphasized strong growth in AI-related revenues, which now constitute the majority of their data center revenue. Citi analysts adjusted Marvell’s stock price target from $136.00 to $122.00, maintaining a Buy rating, following the earnings report that showed modestly above-expectation EPS.
Meanwhile, Wolfe Research also revised its outlook on Marvell, reducing the price target from $130.00 to $115.00 while keeping an Outperform rating. Concerns were raised about Marvell potentially losing a next-generation project to a competitor, but the company’s management reassured their ongoing engagement with a key customer. Marvell’s revenue from custom XPUs is expected to continue its growth trajectory into the next fiscal years, according to Wolfe Research. These developments highlight Marvell’s continued focus on expanding its custom silicon programs and strengthening its position in the AI and data center markets.
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