Stock market today: S&P 500 extends monthly win streak despite Nvidia-led stumble
Investing.com - Jefferies has reduced its price target on Marvell (NASDAQ:MRVL) to $80.00 from $90.00 while maintaining a Buy rating on the semiconductor company’s stock. Currently trading at $77.23, Marvell commands a market capitalization of $67.2 billion, with InvestingPro data showing analyst targets ranging from $64.31 to $133.
The price target adjustment comes as Marvell’s ASIC (Application-Specific Integrated Circuit) business faces a temporary setback in the third quarter due to what Jefferies describes as "customer lumpiness," though the firm expects this segment to recover in the fourth quarter. Despite recent challenges, InvestingPro analysis indicates strong revenue growth with a 37% year-over-year increase and analysts forecasting continued sales expansion.
Jefferies noted that Marvell has shifted to less customer-specific commentary regarding its ASIC programs at its recent AI day and did not reiterate that its lead ASIC customer will grow in calendar year 2026.
Despite this change in communication approach, which Jefferies acknowledges "stokes the Alchip share loss debate," the research firm emphasized that Marvell was clear that everything remains on track with its ASIC business.
Jefferies identified Microsoft as "a much bigger driver for the story" for Marvell, though it characterized this as "a late CY26 storyline," suggesting the full impact of this relationship will materialize later in 2026.
In other recent news, Marvell Technology Inc. reported its second-quarter fiscal year 2026 earnings, showcasing a notable 58% increase in revenue year-over-year, reaching $2.006 billion. The company also reported a record non-GAAP earnings per share (EPS) of $0.67, aligning with market expectations. These results reflect strong growth and have contributed to positive investor sentiment. In addition to the earnings report, Marvell issued mixed guidance for October, with revenue guidance slightly below expectations due to the exclusion of its recently sold automotive business. However, the earnings per share guidance was slightly above forecast. Piper Sandler maintained its Overweight rating on Marvell, with a price target of $85.00, despite the mixed guidance. These developments highlight the company’s ongoing financial performance and strategic adjustments.
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