AnalystConsensusTarget updated the narrative for MRVL

Marvell Technology's analyst price target has been raised by analysts, increasing from around $89.67 to $90.07. This change reflects growing confidence in the company's ongoing momentum in AI infrastructure and custom ASIC growth.

Analyst Commentary

Analyst sentiment on Marvell Technology has recently shown signs of renewed optimism. However, a select group maintains a more cautious stance as various growth drivers and operational risks are considered.

• Bullish analysts highlight increased confidence in Marvell's custom ASIC and connectivity businesses, seeing these segments as tracking solidly toward growth projections amid expanding AI infrastructure demand.
• Management's positive tone during recent investor meetings has reinforced expectations for continued momentum in next-generation AI projects and sustained networking outperformance.
• Several analysts forecast double-digit growth for all business segments in 2026, as cloud service providers and hyperscalers ramp up AI infrastructure investments.
• Advances in low-latency technology are seen as positioning Marvell to capitalize on emerging opportunities in scale-up switching. This could represent a substantial new market opportunity over time.

• Bearish analysts remain cautious, noting that recent quarterly revenue guidance disappointed due to declines in custom silicon revenue and continued challenges in the data center segment.
• Some experts have lowered their price targets based on lower visibility and a more conservative outlook on near-term growth, particularly in light of macroeconomic uncertainties and segments showing weaker demand trends.
• Questions remain about Marvell's share gains in next-generation XPU platforms from large cloud providers, as management has yet to provide clarity on new design wins.
• Ongoing concerns around lumpiness in certain business lines and the impact of recent divestitures are cited as areas for increased scrutiny in future quarters.

What's in the News

• The U.S. government is pressuring Taiwan to increase chip manufacturing in America. The goal is for half of American chip demand to be produced domestically, as part of efforts to safeguard the supply chain and counter geopolitical risks (Bloomberg).
• The Trump administration is considering rules that would require chipmakers to manufacture as many chips in the U.S. as their customers import. There are plans to impose tariffs if companies do not align with these domestic production goals (Wall Street Journal).
• China's Ministry of Commerce has initiated anti-discrimination and anti-dumping investigations into U.S. chip trade policy in response to Washington's measures targeting Chinese semiconductor firms (Reuters).
• The White House is considering reallocating $2 billion from the CHIPS Act to boost funding for critical minerals projects, aiming to reduce dependence on China for materials essential to semiconductor production (Reuters).
• KGI Securities downgraded Marvell's stock rating from Outperform to Neutral and assigned a new price target of $75 (Reuters).

Valuation Changes

• Consensus Analyst Price Target has risen slightly from $89.67 to $90.07, reflecting modest increased optimism in Marvell Technology's outlook.
• Discount Rate increased marginally from 10.31% to 10.36%, indicating a slightly higher perceived risk or cost of capital in new analyses.
• Revenue Growth projections remain virtually unchanged at 19.44%.
• Net Profit Margin is steady, staying at approximately 24.65%.
• Future P/E Ratio has risen slightly from 33.75x to 33.95x, suggesting a subtle shift in valuation expectations by analysts.