Raymond James cuts Marvell stock target to $90, maintains Outperform

On Friday, Raymond (NSE:RYMD) James analyst Srini Pajjuri adjusted the price target on Marvell Technology Group Ltd . (NASDAQ:MRVL), reducing it to $90 from the previous $110, while maintaining an Outperform rating on the shares. Currently trading at $63.73 with a market capitalization of $55 billion, Marvell’s stock has shown significant volatility, as highlighted by InvestingPro data, with a 31% decline over the past six months. Pajjuri noted that Marvell’s recent financial results and future outlook aligned with expectations. He highlighted the company’s ongoing engagement with Amazon (NASDAQ:AMZN) Web Services (AWS) on a next-generation custom AI accelerator and the secured 3nm wafer and packaging capacity, which is anticipated to contribute to growth in 2026. According to InvestingPro analysis, Marvell maintains a moderate debt level with a debt-to-equity ratio of 0.32, while analysts project significant sales growth for the current year.

The analyst pointed out that despite the ongoing discussion around Trainium3, Marvell’s management remains confident about the growth of custom silicon revenue at AWS in FY27/CY26. Furthermore, the engagement with Microsoft (NASDAQ:MSFT) on custom ASICs appears to be progressing well. The optical segment is also performing strongly, maintaining its market share even with some impacts from the NVIDIA (NASDAQ:NVDA) H20 ban.

Marvell’s aftermarket stock movement was attributed to the lack of significant upside surprises, although its Data Center growth, at 76% year over year, is either on par with or exceeding that of its peers. Pajjuri mentioned a slight increase in earnings estimates and considers the valuation attractive at 16 times FY27 P/E despite the reduced price target. The reiteration of the Outperform rating reflects confidence in the stock’s potential, despite the adjustment in the near-term outlook. While currently trading at high EBITDA and revenue multiples, InvestingPro analysis suggests the stock is slightly undervalued, with 10 additional ProTips and a comprehensive research report available for subscribers.

In other recent news, Marvell Technology Inc. reported its financial results for the first quarter of fiscal year 2026, exceeding expectations in both earnings and revenue. The company achieved earnings per share of $0.62, surpassing the forecast of $0.61, and reported revenue of $1.9 billion, which was above the anticipated $1.88 billion. Marvell’s revenue saw a significant 63% year-over-year increase, driven by strong demand in the AI and data center markets. Alongside this, Marvell announced a partnership with NVIDIA and launched several new technologies, indicating its strategic focus on AI and data center technologies. Looking ahead, the company provided optimistic guidance for the second quarter, with expected revenue of $2 billion. In another development, Morgan Stanley (NYSE:MS) maintained an Equalweight rating on Marvell and raised its stock price target from $70.00 to $73.00, reflecting a slightly higher modeled earnings per share for the coming years. The firm expressed confidence in Marvell’s ability to navigate current challenges and capitalize on future growth opportunities, particularly in the AI sector. These recent developments highlight Marvell’s robust financial performance and strategic positioning in the technology market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.