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Investing.com - Needham has reduced its price target on Marvell (NASDAQ:MRVL) to $80.00 from $85.00 while maintaining a Buy rating on the semiconductor company’s stock. According to InvestingPro data, the stock has shown strong momentum with a 10.95% return over the past year, despite trading at high EBIT and EBITDA multiples.
The price target adjustment follows Marvell’s in-line fiscal second-quarter 2026 results, which were overshadowed by disappointing third-quarter revenue guidance due to an expected decline in custom silicon revenue.
Needham projects custom silicon revenue will decrease approximately 15% quarter-over-quarter in the fiscal third quarter of 2026, attributing this decline to customer delivery timing and supply chain changes, though it anticipates a substantial rebound in the fourth quarter.
The research firm noted Marvell’s progress on its 18 XPU and XPU Attach sockets, along with additional socket wins since June, though management declined to comment specifically on next-generation XPU positions with Amazon and Microsoft.
Marvell also plans to introduce UALink and Ethernet scale-up switches within the next two years, according to Needham, which based its revised $80 price target on a multiple of approximately 25 times its reduced calendar year 2026 non-GAAP earnings per share estimate.
In other recent news, Marvell Technology reported its second-quarter fiscal year 2026 earnings, highlighting strong growth in both revenue and earnings per share. The company achieved a record non-GAAP EPS of $0.67, aligning with market expectations, and reported revenue of $2.006 billion, a notable 58% year-over-year increase. Despite these results, Goldman Sachs adjusted its price target for Marvell from $75 to $72, maintaining a Neutral rating, citing the company’s in-line quarterly results and guidance. Jefferies also lowered its price target from $90 to $80, keeping a Buy rating, as it anticipates a temporary setback in Marvell’s ASIC business due to customer fluctuations. However, Jefferies expects this segment to recover in the fourth quarter. Piper Sandler maintained its Overweight rating with an $85 price target, despite Marvell’s mixed guidance for October, noting that earnings per share guidance was slightly above forecast while revenue guidance fell short. This revenue miss was attributed to the exclusion of the automotive business, which Marvell recently divested. These developments provide insight into the current landscape for Marvell, as analysts adjust their expectations based on recent performance and future prospects.
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