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On Wednesday, Redburn-Atlantic initiated coverage on Marvell Technology Group Ltd . (NASDAQ:MRVL), assigning the stock a Neutral rating with a price target of $67.00. The Redburn-Atlantic analyst highlighted the similarities between Marvell and Broadcom (NASDAQ:AVGO) in terms of their ASICs exposure and networking capabilities. According to InvestingPro data, Marvell currently trades at an EV/EBITDA multiple of 43.4x, reflecting premium valuation metrics in the semiconductor space. However, the analysis brought to light concerns regarding Marvell’s role in the development of future Amazon (NASDAQ:AMZN) Web Services (AWS) Trainium chips.
The analyst expressed caution over the potential for Marvell’s competitors, such as Alchip or AWS’s own Annapurna Labs, to play a more significant part in AWS’s accelerated ASICs going forward. This uncertainty stems from the possibility of these entities taking a larger share of the work on AWS’s projects, which could impact Marvell’s business with AWS.
Marvell’s stock price has seen a considerable decline of nearly 50% in 2025, with InvestingPro data showing a 42.12% YTD decline and a 29.05% drop over the past six months. This drop is associated with an approximate 16% reduction in the company’s three-year forward GAAP earnings per share (EPS), when compared to a PEG ratio reconciliation to Broadcom. Despite current challenges, analysts expect the company to return to profitability this year with projected EPS of $2.83 for FY2026. The analyst noted that while the market’s reaction to the perceived risks in Marvell’s relationship with AWS is challenging to quantify, it does not seem excessively punitive at this stage.
Marvell’s financial performance and future prospects are closely tied to its partnerships and the competitive landscape of the semiconductor industry. The concerns raised by Redburn-Atlantic reflect the dynamic nature of the tech sector, where shifts in strategic relationships can significantly influence a company’s valuation and market position.
Investors and market watchers will likely monitor Marvell’s developments, particularly with respect to its collaboration with AWS and its positioning against competitors in the ASICs market. The Neutral rating suggests a wait-and-see approach as these factors unfold, with the $67.00 price target indicating a measured outlook on the stock’s future performance. InvestingPro analysis reveals a "FAIR" overall financial health score, with analyst targets ranging from $60 to $135, suggesting significant potential upside in optimistic scenarios. For deeper insights into Marvell’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Marvell Technology Group Ltd. is expected to report its earnings soon, with analysts projecting the company to slightly outperform expectations. Marvell’s revenue for the upcoming quarter is anticipated to reach approximately $1.875 billion, with guidance for the following quarter expected to exceed $2 billion. Analysts from Cantor Fitzgerald and JPMorgan have highlighted Marvell’s growth in AI Data Center revenue, particularly through its partnerships with Amazon and Microsoft (NASDAQ:MSFT). Meanwhile, Susquehanna has maintained a Positive rating on Marvell but adjusted its price target down to $90 due to potential challenges in the Inphi (NASDAQ:IPHI) and custom ASIC segments.
JPMorgan has reiterated an Overweight rating with a $130 price target, citing robust demand for Marvell’s AI ASIC programs and 800G products. However, Melius Research downgraded Marvell from Buy to Hold, maintaining a $66 price target, due to unmet expectations in custom silicon momentum and other growth areas. Despite these mixed ratings, Marvell’s advancements in custom ASICs and its AI Data Center business are seen as key drivers for future revenue growth.
The company is also preparing for a high-volume ramp of its Trainium 3 program in 2026, alongside other AI initiatives. The outlook for Marvell remains complex, with competitive pressures and a mix of positive and challenging indicators influencing analyst perspectives. Investors are closely watching Marvell’s strategic moves in the AI and data center sectors, which are expected to be focal points in the company’s upcoming earnings call.
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