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On Thursday, Piper Sandler made an adjustment to the price target for Marvell (NASDAQ:MRVL), reducing it to $95 from the previous $120, while maintaining an Overweight rating on the shares. Currently trading at $90.14 with a market capitalization of $78 billion, Marvell appears overvalued according to InvestingPro analysis. The firm’s analysis followed Marvell’s recent financial reports, which included performance for the January quarter and guidance for April that were both approximately as expected.
Marvell’s data center segment was a notable performer, achieving a 24% quarter-over-quarter growth for the January quarter. The company’s overall revenue grew 4.71% over the last twelve months, as reported by InvestingPro, which highlights 12 additional key insights about the company’s performance. Piper Sandler anticipates a more modest growth rate of about 4% sequentially for this segment in their model for the coming quarter. This slowdown is attributed to a significant deceleration in non-AI components related to on-premise solutions.
Despite the general slowdown, the artificial intelligence (AI) portion of Marvell’s data center segment is still projected to experience robust double-digit sequential growth in the April quarter. The company’s overall AI trend for the entire year appears very strong, mainly propelled by its custom ASICs business. Within the AI space, custom ASICs and optical components are identified as the fastest growing areas.
Piper Sandler’s report also indicated an upward revision of their financial projections for Marvell for fiscal years 2026 and 2027. The firm reiterated their Overweight rating on the stock, signaling confidence in Marvell’s long-term prospects despite the adjustment in the price target to $95.
In other recent news, Marvell Technology Group Ltd . reported substantial growth in its Data Center segment, achieving $1.37 billion in revenue, a 24% sequential increase and a 78% year-over-year rise. The company also anticipates future growth in its custom silicon for Amazon (NASDAQ:AMZN) Web Services, projecting significant revenue in fiscal years 2026 and 2027. Analyst firms have been adjusting their price targets for Marvell, with KeyBanc reducing its target to $115 while maintaining an Overweight rating, and Stifel lowering its target to $115 but keeping a Buy rating. Barclays (LON:BARC) also cut its price target to $130, retaining an Overweight rating, citing solid performance but unmet elevated expectations. Jefferies adjusted its target to $100, maintaining a Buy rating despite underwhelming results compared to high expectations. Citi revised its target to $122, continuing a Buy recommendation, noting modest EPS growth above expectations. These adjustments reflect Marvell’s ongoing growth in the AI and data center markets, with analysts showing confidence in the company’s long-term prospects despite recent adjustments.
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