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On Friday, Marvell Technology Group Ltd . (NASDAQ: NASDAQ:MRVL) saw its price target increased from $85.00 to $95.00 by Piper Sandler, while the firm maintained its Overweight rating on the stock. According to InvestingPro data, Marvell trades at a relatively high EBIT multiple, with the stock currently showing mixed signals after falling over 31% in the past six months. The adjustment follows Marvell’s reported earnings for the April quarter, which modestly exceeded expectations. Marvell’s guidance for the July quarter also met the high expectations, largely due to the advancement of its custom AI silicon program.
According to Piper Sandler, Marvell’s focus on AI as a key revenue driver is expected to continue growing. InvestingPro analysis shows the company is expected to achieve significant sales growth this year, with revenue growing 21.6% over the last twelve months. The firm is successfully progressing with its main AI customer, despite the current challenging macroeconomic conditions, and is on track for a significant volume ramp-up in its XPU products. This momentum is anticipated to carry forward, with Marvell securing production capacity for 3nm wafer and advanced packaging set to ramp up in calendar year 2026.
Marvell’s optical portfolio is also poised for growth, with potential tailwinds from the adoption of co-packaged optics in AI data centers. Piper Sandler’s analyst highlighted the company’s consistent execution of its strategy surrounding XPUs, which is projected to be a key factor in driving future results.
The statement from Piper Sandler emphasized the solid progression of Marvell’s custom silicon, particularly in the compute and optics sectors, which are instrumental in delivering the reported results. While currently operating with moderate debt levels and maintaining a healthy current ratio of 1.3, InvestingPro analysis reveals over 10 additional key insights about Marvell’s financial health and growth prospects, available in the comprehensive Pro Research Report. The firm reiterated its Overweight rating, signaling confidence in Marvell’s ongoing performance and strategic direction.
In other recent news, Marvell Technology Group Ltd. reported earnings that slightly exceeded consensus estimates, with revenues of $1.89 billion and earnings per share (EPS) of $0.62, compared to the anticipated $1.88 billion and $0.61 EPS. The company also provided guidance above expectations, forecasting $2.0 billion in revenue and $0.67 EPS. Analysts from Needham have adjusted their price target for Marvell to $85 from $100, citing tariff uncertainties and a more conservative outlook, though they maintained a Buy rating. Rosenblatt Securities kept a Buy rating with a $124 price target, attributing revenue growth to strong demand in AI Data Center operations and improvements in other segments. Cantor Fitzgerald reiterated a Neutral rating with a $60 price target, expressing concerns about potential competition and customer diversification. Oppenheimer maintained an Outperform rating with a $95 price target, highlighting Marvell’s partnerships and advancements in AI technology. Barclays (LON:BARC) also maintained an Overweight rating with an $80 price target, noting Marvell’s ongoing collaborations and share repurchase plans. These developments reflect a mix of cautious optimism and strategic positioning within the semiconductor industry.
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