BofA update shows where active managers are putting money
Investing.com - Melius Research lowered its price target on Marvell (NASDAQ:MRVL) to $70.00 from $76.00 while maintaining a Hold rating on the semiconductor company. According to InvestingPro data, analysts maintain a bullish consensus on MRVL with price targets ranging from $64.31 to $133.00.
The price target reduction follows Marvell’s third-quarter guidance for its Data Center business, which was approximately 5% below market expectations after a slight second-quarter miss. Despite near-term challenges, InvestingPro analysis shows strong revenue growth of 37% over the last twelve months, with analysts expecting continued sales growth this year.
Melius noted that Marvell’s business with Amazon appears "lumpy" with no upside from Trainium 2, while the company’s role in AWS’s next-generation Trainium 3 heading into fiscal year 2026 remains uncertain.
The research firm acknowledged Marvell’s progress in custom accelerators (XPUs) and AI-related custom work, with more than 18 wins reported, though the financial impact remains difficult to quantify.
Melius expressed concern that with Marvell’s AI revenues declining in the near term and its projected 30% AI growth rate lagging behind competitors Nvidia and Broadcom, which forecast 50% and 60% growth respectively, investors may be reluctant to pay for unproven potential.
In other recent news, Marvell Technology Inc. reported its second-quarter fiscal year 2026 earnings, revealing 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 significant 58% increase year-over-year. Despite these results, Marvell provided mixed guidance for the upcoming quarter, with revenue expectations slightly below forecasts due to the exclusion of its recently sold automotive business. Piper Sandler maintained an Overweight rating and an $85.00 price target on Marvell, citing the mixed guidance. Meanwhile, Needham lowered its price target to $80 while keeping a Buy rating, pointing to a decline in custom silicon revenue. Similarly, Jefferies adjusted its price target to $80, noting temporary setbacks in Marvell’s ASIC business but expecting recovery in the fourth quarter. Goldman Sachs also revised its price target to $72, maintaining a Neutral rating, as Marvell’s quarterly results and guidance aligned with expectations but showed better margins and EPS. These developments reflect varying analyst perspectives on Marvell’s future performance.
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