Nucor earnings beat by $0.08, revenue fell short of estimates
On Friday, UBS analyst Timothy Arcuri reaffirmed a Buy rating for Marvell Technology Group Ltd (NASDAQ:MRVL), maintaining a price target of $100.00. As a prominent player in the Semiconductors & Semiconductor Equipment industry, Marvell’s stock currently trades at $60.62, with analysts’ targets ranging from $60 to $133. Arcuri’s endorsement comes with the expectation that Marvell will grow its revenue from Amazon (NASDAQ:AMZN) next year, aligning with InvestingPro data showing expected sales growth and net income improvement this year. However, projections for Microsoft (NASDAQ:MSFT) in 2027 are less certain due to the balance between Marvell’s Maia ASIC deployment and AMD (NASDAQ:AMD)’s product roadmap.
Arcuri notes that while the consensus earnings per share (EPS) estimates for Marvell might be slightly optimistic, the current stock valuation already reflects this, with shares trading at approximately 16 to 17 times the projected 2026 EPS. According to InvestingPro, which offers comprehensive analysis through its Pro Research Reports covering 1,400+ US equities, Marvell’s current valuation metrics show high EBIT and EBITDA multiples. Despite this, UBS has made only minor adjustments to their EPS forecasts, even after excluding the automotive business for the fourth fiscal quarter of this year.
The UBS analyst anticipates that as issues surrounding custom ASIC are addressed, Marvell’s stock multiple will likely re-expand. Additionally, an improvement in market sentiment is expected following the upcoming custom ASIC day. UBS is targeting an EPS of around $3.80 to $3.90 for the calendar year 2027, which supports the firm’s unwavering $100 price target for Marvell stock.
Arcuri’s analysis suggests that the current market price of Marvell’s shares takes into account the potential overestimation of Street EPS. The UBS analyst projects that Marvell’s financial performance and the resolution of its custom ASIC challenges will contribute to a positive shift in the stock’s valuation and investor sentiment in the near future.
In other recent news, Marvell Technology Group Ltd. reported a year-over-year revenue increase of 63%, with its Data Center business experiencing a 76% surge. Despite these strong figures, the company’s stock did not see the same positive reaction as Nvidia (NASDAQ:NVDA)’s, potentially due to modest guidance and limited details on its AI results. Piper Sandler raised Marvell’s price target to $95, maintaining an Overweight rating, citing the company’s focus on AI and its successful progress with custom AI silicon. Meanwhile, Needham adjusted its price target to $85, reflecting a cautious outlook due to tariff uncertainties, although it kept a Buy rating on the stock.
Rosenblatt Securities maintained a Buy rating with a $124 price target, highlighting Marvell’s robust demand in AI Data Center operations and its strategic positioning in the custom AI ASIC market. Cantor Fitzgerald reiterated a Neutral rating with a $60 price target, noting slightly better-than-expected earnings results and guidance. Concerns were raised about potential competition and customer diversification impacting Marvell’s Custom Silicon business. Despite these concerns, Marvell’s leadership in advanced technologies like Co-Packaged Optics and High Bandwidth (NASDAQ:BAND) Memory remains a point of interest for investors.
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