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Friday, Marvell Technology Group Ltd . (NASDAQ:MRVL), a $55 billion market cap semiconductor company, remained under the spotlight as Oppenheimer analyst Rick Shafer reiterated an Outperform rating and a $95.00 price target. In a report released following the company’s financial results for the first quarter ending in April and its outlook for the second quarter ending in July, Shafer provided a positive assessment of Marvell’s ongoing projects and growth trajectory. InvestingPro data shows strong analyst consensus supporting this view, with targets ranging from $60 to $133.
Shafer highlighted Marvell’s multi-generational partnership with Amazon (NASDAQ:AMZN) Web Services (AWS), expressing confidence in the progression of Marvell’s Trainium2 (T2) product, which uses 5-nanometer technology, and its expected ramp-up into the calendar year 2026. This would be followed by the introduction of Trainium3 (T3) with 3-nanometer technology in early 2026. Additionally, Shafer noted that the company has already secured supply for 3-nanometer wafers and advanced packaging. According to InvestingPro analysis, revenue is forecast to grow by 42% in the coming fiscal year, supporting these ambitious expansion plans.
The report also touched on the potential development of Trainium4, indicating that Marvell may have begun preliminary discussions about this next-generation product. The analyst pointed out that management anticipates the Microsoft (NASDAQ:MSFT) Maia accelerator will start ramping up in the calendar year 2026, possibly as early as the first quarter.
Marvell’s management acknowledged that while large cloud service provider (CSP) projects may seek multiple partners, the company’s artificial intelligence (AI) sector now accounts for over 50% of its data center revenue and is approaching 40% of total revenues. The analyst projects that AI could represent more than 50% of Marvell’s total revenues in the near future. While currently trading at a high EBITDA multiple of 43x, InvestingPro analysis suggests the stock is slightly undervalued based on its Fair Value model, with 10+ additional ProTips available for subscribers.
Investors and analysts can expect to gain more insight into Marvell’s projects and timelines during the custom ASIC event scheduled for June 17, 2025. The event is anticipated to provide further clarity on the company’s strategic initiatives and growth prospects. For comprehensive analysis of Marvell’s financial health, valuation metrics, and growth potential, access the detailed Pro Research Report available exclusively on InvestingPro.
In other recent news, Marvell Technology Group Ltd. has been the subject of several analyst reports highlighting its current projects and financial outlook. Barclays (LON:BARC) maintained its Overweight rating for Marvell with a price target of $80, emphasizing the company’s advancements in 3nm technology and collaborations with Amazon and Microsoft. The firm also noted Marvell’s strategic share repurchase plans, which are expected to be bolstered by the sale of its automotive business later this year. BofA Securities reiterated a Buy rating with a $72 price target, citing Marvell’s significant projects, including a custom chip program with Amazon and multiple generations of custom chip programs with Microsoft.
Wolfe Research adjusted its price target for Marvell to $90 from $115, maintaining an Outperform rating. The firm expressed concerns about the impact of a parallel project involving Alchip and Amazon on Marvell’s future revenue streams but remained optimistic about the company’s prospects. KeyBanc Capital Markets also reduced its price target to $90 while maintaining an Overweight rating, following Marvell’s first-quarter results and second-quarter guidance that aligned with market expectations. The firm highlighted Marvell’s year-over-year growth in its Data Center business and reaffirmed revenue growth expectations from its custom AI ASIC segment at AWS.
These developments indicate ongoing strategic efforts by Marvell to enhance its technology and production capabilities while navigating competitive challenges in the semiconductor industry.
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