Marvell Technology's AI Chip Sales Soar, but Stock Tumbles Despite Strong Earnings

Marvell: Q4 Data Center Revenue Soars | The Motley Fool

Marvell Technology (MRVL 2.05%), known for its semiconductor solutions, reported fiscal 2025 fourth-quarter results on Wednesday, March 5, that came in just ahead of analysts' consensus expectations. Adjusted EPS of $0.60 exceeded the $0.59 estimate, and revenue of $1.82 billion outperformed the expected $1.8 billion. This positive result was largely due to a significant 78% year-over-year rise in data center revenue. Marvell's overall performance this quarter was strong, though gross margins showed a slight decline. Source: Marvell Technology. Note: Analyst consensus estimates for the quarter provided by FactSet. YOY = Year over year. Marvell Technology, a key player in the semiconductor industry, provides a wide range of semiconductor solutions intended for data infrastructure. This includes work in data centers, enterprise networking, and carrier infrastructure. Marvell targets technological innovation, particularly in System-on-a-Chip (SoC) solutions and custom silicon, as critical elements of its business strategy. Recently, Marvell has homed in on data center operations, especially through its custom artificial intelligence (AI) silicon technology. This focus is aimed at long-term growth and is crucial as the demand for AI-enabled data solutions increases. The company is investing in technological advancements such as 5nm and 3nm process technology, continually improving its high-performance and energy-efficient semiconductor offerings. Marvell reported outstanding growth in the data center segment in fiscal 2025 Q4 (ended Feb. 1, 2025) with revenue climbing to $1.37 billion, making up 75% of total Q4 revenue. Demand for custom AI silicon and interconnect products in the semiconductor sector has been a primary driver of this growth. Strong custom silicon volumes, while fueling top-line growth, also slightly squeezed margins. Overall, Marvell's gross margin was 60.1% in Q4 2025, reflecting a 3.8 percentage point decrease year over year. High custom silicon volumes impacted margins, but it closely aligned with management's target of approximately 60%. Operating expenses on an adjusted basis were broadly in line with management's guidance of around $480 million. From a strategic standpoint, Marvell continues diversifying its end markets to mitigate risks and sustain growth across multiple industries. Some segments, like consumer and carrier infrastructure, faced revenue declines, but Marvell's strong data center and enterprise networking performance create substantial opportunities for balancing future growth. One-time restructuring charges in Q4 affected net income but aimed to better align resources towards data center technologies. As Marvell invests heavily in AI and data center capabilities, these efforts should support its operational efficiencies and strengthen its competitive positioning. Looking forward, Marvell management expects Q1 fiscal 2026 revenue to reach $1.875 billion (slightly above the $1.865 billion FactSet consensus view), reflecting over 60% year-over-year growth. It anticipates GAAP gross margins staying around 50.5% and adjusted margins at approximately 60%, despite potential higher custom silicon volumes. This ongoing margin management demonstrates Marvell's ability to handle scale and complexity in manufacturing. Investors should watch Marvell's continued successes in AI and data center expansions, where it gained recent design wins. Forward guidance indicates sustained demand for cloud solutions, already translating into strong revenue momentum. Management remains optimistic about future growth driven by innovative custom silicon programs and sustained demand from cloud customers.

Custom AI chipmaker Marvell's stock tumbles after-hours, despite earnings and revenue beat - SiliconANGLE

Custom AI chipmaker Marvell's stock tumbles after-hours, despite earnings and revenue beat Chipmaker Marvell Technology Inc. delivered better-than-expected results and guidance in its latest financial report today, but investors were decidedly unimpressed, and its stock fell hard in the after-hours trading session. The company reported fourth-quarter earnings before certain costs such as stock compensation of 60 cents per share, just edging past Wall Street's target of 59 cents per share. Revenue for the period rose 27% from a year earlier, to $1.82 billion, ahead of the $1.8 billion consensus view. Marvell's impressive revenue growth helped the company deliver a net profit of $200.2 million in the quarter, swinging from a loss of $392.7 million in the same period one year ago. The company is a major player in the world of data storage, networking and automotive chip manufacturing. Its primary customers are cloud computing providers, telecommunications firms and car manufacturers. Although it's much smaller than rival chipmakers such as Intel Corp. and Nvidia Corp., Marvell is well-established in the industry and is benefiting from the rising demand for silicon that can power artificial intelligence workloads. Marvell Chief Executive Matt Murphy (pictured) told analysts that the company's custom AI silicon programs have now entered volume production, and insisted this bodes well for its future prospects. "Marvell has secured multiple new design wins, including several custom silicon programs that will fuel future growth," he added. The key profit driver for Marvell was its data center business, which generated the bulk of its revenue at $1.365 billion, up 78% from the year-ago period and 24% sequentially. However, the rest of Marvell's chipmaking business doesn't look so good. Sales in the enterprise networking segment fell 35% to $171.4 million, while the carrier infrastructure and consumer segments both fell 38%. The automotive and industrial segment climbed 4%. On the other hand, all of those units but the consumer segment showed growth on a sequential basis. For the current quarter, Marvell said it's looking for earnings of 61 cents at the midpoint of its guidance, a penny above the consensus view of 60 cents. In terms of revenue, it's shooting for $1.875 billion at the midpoint, just ahead of the Street's target of $1.865 billion. Despite topping those key guidance metrics, Marvell's stock fell more than 15% after-hours. This year, investors have been punishing AI-related stocks that fail to meet their sky-high expectations, and Marvell's stock is now down 18% in the year to date.

AI chipmaker Marvell's stock tumbles after-hours, despite earnings and revenue beat - SiliconANGLE

AI chipmaker Marvell's stock tumbles after-hours, despite earnings and revenue beat Chipmaker Marvell Technology Inc. delivered better-than-expected results and guidance in its latest financial report today, but investors were decidedly unimpressed, and its stock fell hard in the after-hours trading session. The company reported fourth quarter earnings before certain costs such as stock compensation of 60 cents per share, just edging past Wall Street's target of 59 cents per share. Revenue for the period rose 27% from a year earlier to $1.82 billion, ahead of the $1.8 billion consensus view. Marvell's impressive revenue growth helped the company deliver a net profit of $200.2 million in the quarter, swinging from a loss of $392.7 million in the same period one year ago. The company is a major player in the world of data storage, networking and automotive chip manufacturing. Its primary customers are cloud computing providers, telecommunications firms and car manufacturers. Although it's much smaller than rival chipmakers such as Intel Corp. and Nvidia Corp., Marvell is well-established in the industry and is benefiting from the rising demand for silicon that can power artificial intelligence workloads. Marvell Chief Executive Matt Murphy (pictured) told analysts that the company's custom AI silicon programs have now entered volume production, and insisted this bodes well for its future prospects. "Marvell has secured multiple new design wins, including several custom silicon programs that will fuel future growth," he added. The key profit driver for Marvell was its data center business, which generated the bulk of its revenue at $1.365 billion, up 78% from the year-ago period and 24% sequentially. However, the rest of Marvell's chipmaking business doesn't look so good. Sales in the enterprise networking segment fell 35% to $171.4 million, while the carrier infrastructure and consumer segments both fell 38%. The automotive and industrial segment climbed 4%. On the other hand, all of those units bar the consumer segment showed growth on a sequential basis. For the current quarter, Marvell said it's looking for earnings of 61 cents at the midpoint of its guidance, a penny above the consensus view of 60 cents. In terms of revenue, it's shooting for $1.875 billion at the midpoint, just ahead of the Street's target of $1.865 billion. Despite topping those key guidance metrics, Marvell's stock fell more than 15% after-hours. This year, investors have been punishing AI-related stocks that fail to meet their sky-high expectations, and Marvell's stock is now down 18% in the year to date.

Marvell Technology Shares Tumble Despite Strong AI Revenue Growth. Is This an Opportunity to Buy the Dip on a Great Stock? | The Motley Fool

Shares of Marvell Technologies (MRVL -7.30%) were plunging following its fiscal 2025 fourth-quarter earnings report, despite the company seeing strong data center and artificial intelligence (AI) revenue growth. The stock is now down more than 40% year to date. Let's take a closer look at the chipmaker's latest report and guidance to see if this sell-off is a good opportunity to buy the stock. Marvell is tied to the data center market as it provides networking chips, connectivity solutions, and data storage controllers. As such, it has been benefiting from the AI infrastructure buildout currently taking place. The company also helps customers design their own custom AI chips and provides some intellectual property around Amazon's custom AI chips. Marvell's strength in this area was seen in Q4, with its data center revenue surging 78% year over year in the quarter to $1.37 billion. The company credited strong demand for its electro-optics products, which are used for high-speed data transmission, and the ramp-up of its custom AI chip program for the strong growth. Data center revenue accounted for 75% of its top line in the quarter. However, overall revenue climbed just 27% to $1.82 billion as other areas of its business saw steep declines. That result was just ahead of the midpoint of management's guidance. It recorded $171 million in enterprise networking revenue, down 35% over year but up 14% from the third quarter. Carrier infrastructure revenue sank 38% to $106 million but also rose 25% sequentially. Marvell said it was seeing a recovery in both of these markets. Consumer revenue, meanwhile, dropped 38% year over year to $89 million, while automobile revenue rose 4% to $86 million. Data source: Marvell Q4 earnings press release. YOY = year over year. QOQ = quarter on quarter. Adjusted earnings per share (EPS) climbed 30% year over year to $0.60. That was just ahead of the midpoint of management's outlook of $0.59. The company generated operating cash flow of $514 million for the quarter and $1.68 billion for the year, which was a record. Marvell repurchased $200 million in stock in the quarter too. Looking ahead, Marvell guided for fiscal 2026 first-quarter revenue of $1.875 billion, plus or minus 5%, which represents growth of about 60%. It is looking for adjusted EPS of $0.56 to $0.67. Management said it expects AI revenue to "significantly exceed" its prior $2.5 billion target for fiscal 2026. The company's two leading AI custom programs are in high volume production, and its lead AI accelerator customer is currently working on a next-generation chip. Once it completes its sampling and qualification cycles, it will begin ramping production. Revenue from this customer should grow in the current fiscal year and beyond. That next-generation chip is a reference to Amazon's Trainium chip, which has been a growing source of uncertainty for investors. Some analysts have reported the possibility that Marvell is losing its place in the partnership to competition, but management's latest remarks should reassure shareholders for the time being. While Marvell turned in a solid quarter, expectations going into the quarter were high, and the stock's post-earnings sell-off has extended into its third trading day (as of this writing). That's a much more reasonable valuation compared to where it was trading as recently as January. Meanwhile, it's seeing strong data center and AI revenue growth, and some of its other more cyclical businesses seem to be recovering. The update surrounding its involvement in Amazon's Trainium chip development was overall positive as well. Macroeconomic uncertainty has only worsened the current sell-off, which looks overdone at this point. With that in mind, investors should consider buying this dip.

Marvell Surpasses AI Chip Sales Target, Aims Higher For 2026, But Stock Plunges Due To Muted Guidance - Invesco QQQ Trust, Series 1 (NASDAQ:QQQ), Marvell Tech (NASDAQ:MRVL)

Marvell Technology Inc. MRVL smashed its artificial intelligence data center revenue target in fiscal 2025. The chipmaker also reiterated plans to exceed fiscal 2026's target but issued a soft earnings and revenue guidance which was roughly in-line with analyst estimates. What Happened: About 75% of Marvell's total revenue in the fourth quarter was driven by AI data center-led sales. Whereas for the full fiscal year 2025, the company's AI revenue was substantially above its $1.5 billion target. "We also expect to very significantly exceed our $2.5 billion target in fiscal 2026," said Matthew Murphy, the chairman, president, and CEO of the company. While the CFO Willem Meintjes issued a revenue guidance in the range of $1.875 billion, with a plus or minus 5% possibility, it was roughly in-line with the street's $1.87 billion expectation. Shares of the company plunged nearly 15% in after-hours trading based on the soft guidance. "We project our overall revenue from the auto and industrial end market to decline sequentially in the high single digits on a percentage basis," added the CEO. The management also emphasized the "stickiness" of its custom silicon wins due to its technology leadership, manufacturing scale, and close customer relationships. See Also: Rigetti Asserts 'Leadership' In Quantum Computing Race, Aims To Scale To 100 Qubits As It Looks To Catch Up With IBM, Google Why It Matters: The company beat its fourth quarter estimates with adjusted EPS of $0.60 and revenue of $1.81 billion. It generated $514 million in operating cash flow and a 60.1% non-GAAP gross margin. The shares ended 2.05% higher on Wednesday but slipped 14.85% in after-hours. The exchange-traded fund tracking Nasdaq 100 index, Invesco QQQ Trust, Series 1 QQQ ended 1.30% higher on Wednesday and fell 0.32% in after-hours. On a year-to-date basis MRVL has fallen by 20.62% but it's up 10.78% over the last year. Analyst Recommendations: Benzinga tracks 33 analysts with an average price target of $113.69 for the stock, reflecting a "buy" rating. Estimates range widely from $75 to $150. Recent ratings from Morgan Stanley, Keybanc, and Barclays average at $132.67, suggesting a potential 72.86% upside. Read Next: Trump Seeks To End CHIPS Act: Who Stands To Lose? Here's A List Of Beneficiaries That Could Be Affected Photo courtesy: Shutterstock MRVLMarvell Technology Inc$76.75-14.8%OverviewQQQInvesco QQQ Trust, Series 1$500.41-0.32%Market News and Data brought to you by Benzinga APIs

Marvell Stock Drops 15% as the Artificial Intelligence (AI) Chipmaker's Guidance Disappoints Investors | The Motley Fool

Shares of Marvell Technology (MRVL 2.05%), which makes semiconductors for the data infrastructure market, dropped 14.9% in Wednesday's after-hours trading session following the company's release of its report for the fourth quarter of its fiscal year 2025 (ended Feb. 1). The quarter's revenue and earnings were essentially in line with Wall Street's estimates, as was first-quarter guidance for the top and bottom lines. The main reason for the stock's decline was likely investor disappointment about guidance. Granted, Marvell's outlook was in line with Wall Street's expectations, but that's often not good enough for companies in the artificial intelligence (AI) space, where investors have particularly high expectations. Those high expectations were evident last year, as investors drove Marvell stock to a gain of 83.1% in 2024. Data source: Marvell Technology. *Calculations by author, except for revenue change, which was provided by Marvell. YOY = year over year. GAAP = generally accepted accounting principles. Fiscal Q4 2025 ended Feb. 1. Investors should focus mainly on the adjusted numbers, which exclude one-time items. Wall Street was looking for an adjusted earnings per share (EPS) of $0.60 on revenue of $1.81 billion, so Marvell's results were essentially in line with both expectations. (Yes, the revenue result was slightly higher, but in my view, this beat was small enough to consider the result roughly in line with the consensus estimate.) In the quarter, Marvell generated cash of $514 million running its operations, down 6% from the year-ago period. It ended the period with cash and equivalents of $948.3 million -- little changed from $950.8 million a year ago -- and long-term debt of $3.9 billion on its balance sheet. Data source: Marvell Technology. YOY = year over year. The data center end market's robust performance was driven by continued strong demand for the company's AI-related products. These include custom AI chips -- which are application-specific integrated circuits (ASICs) -- and interconnect products for data centers processing AI workloads. The company's other end markets are mostly rebounding. While revenue in enterprise networking and carrier infrastructure continued to decline year over year, revenue in both markets rose on a sequential-quarter basis. Their quarter-over-quarter revenue increases were 14% and 25%, respectively. In addition to eking out a 4% year-over-year increase, auto revenue edged up 3% sequentially. The consumer end market is the only market whose revenue continued to decline year over year and sequentially. The sequential decline was only 8%, so it would seem this market could soon be rebounding off its lows. Here's much of CEO Matt Murphy's statement in the earnings release: We closed fiscal year 2025 on a high note.... This performance was driven by strong growth in our data center end market, where revenue increased 78% year-over-year in the fourth quarter, along with a continued recovery in our multi-market businesses. Our custom AI silicon programs have now entered volume production, and we continue to see strong growth from our interconnect products. Marvell has secured multiple new design wins, including several custom silicon programs that will fuel future growth. We are well positioned for a strong start to fiscal 2026. We expect first-quarter revenue growth of over 60 percent year over year at the mid-point of guidance, and we anticipate strong revenue growth for the full fiscal year. For the first quarter of fiscal year 2026 (which ends in late April/early May), management expects: Going into the release, Wall Street had been expecting fiscal Q1 2026 adjusted EPS of $0.60 on revenue of $1.87 billion. So, at the midpoint of the range, Marvell's outlook for revenue and earnings was essentially in line with the analyst consensus estimates. Marvell turned in a strong quarter and outlook. The stock's post-earnings release decline seems a reflection of investors' expectations being too high. Given the current volatile geopolitical and macroeconomic environments (including the tariff war that began on Tuesday between the U.S. and our three largest trading partners, Canada, China, and Mexico), it would make sense for management to be more cautious than usual in its outlook. For growth investors, Marvell stock is worth a place on your watch list. Demand from its data center end market should remain robust as tech companies continue to build out infrastructure to support powerful demand for AI capabilities. Moreover, the company's other end markets are mostly in recovery mode.

Marvell's tepid revenue forecast reignites AI spending fears, shares slump

March 6 (Reuters) - Marvell Technology (MRVL.O), opens new tab tumbled 16% and dragged down rival chipmakers on Thursday, after an in-line revenue forecast gave investors another reason to be jittery about spending on AI infrastructure, as a years-long rally shows signs of cooling. Wall Street had looked to earnings from Marvell, a key supplier of custom AI chips to Big Tech, for signs of enduring demand that has powered U.S. market gains since ChatGPT ignited the generative AI boom in late 2022. But the company's current-quarter revenue forecast, $10 million above estimates, did little to allay fears about the need for big investments on AI infrastructure sparked by low-cost breakthroughs from Chinese startup DeepSeek. Investors are now awaiting Broadcom's (AVGO.O), opens new tab results, due later on Thursday, as the most important supplier in the custom AI chip space, with Marvell ranked second. Shares of Broadcom fell 4%, while Nvidia (NVDA.O), opens new tab slid 2%. The chip sector has also taken a hit from the tariffs imposed by President Donald Trump on countries including China. The broader Philadelphia Semiconductor Index (.SOX), opens new tab is down 5% so far in 2025, after a gain of nearly 20% last year. "Sentiment is rough for AI semiconductor stocks right now," Melius Research analysts said. "The negative reaction (for Marvell) stems from what was only a slight revenue beat and raise." Marvell, which briefly overtook Intel in market value last year, was set to lose $12 billion, if premarket share losses hold. The stock rose more than 83% in 2024, but has declined about 18% so far this year. Marvell exceeded its fiscal 2025 target of $1.5 billion in AI revenue, and expects to outdo its projections of $2.5 billion in AI sales in fiscal 2026, CEO Matt Murphy said on a post-earnings call. J.P. Morgan analysts attributed the tepid outlook to "a slowdown in on-premise datacenter products," referring to weaker demand for ethernet cables and fiber channels that transfer data across servers. As Big Tech shifts spending to AI chips, demand for networking equipment -- Marvell's core business -- has weakened. Custom chips also yield lower margins than off-the-shelf processors. Marvell expects adjusted April-quarter gross margin of about 60%, down more than two percentage points from a year earlier. At least nine brokerages cut their price targets for Marvell after the results, with median at $130 as per LSEG, representing a 44% upside to the stock's last closing price. Reporting by Arsheeya Bajwa in Bengaluru; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab Suggested Topics:Artificial Intelligence

Analysts overhaul Marvell stock price targets after Q4 earnings

Marvell Technology shares fell sharply lower in early Thursday trading following a solid, but unsurprising, set of fourth quarter earnings that arrived during a broader market slump tied to tariff and growth concerns. Marvell (MRVL) has emerged, along with Broadcom AVGO and Advanced Micro Devices AMD, as one of the major U.S. chipmaking rivals to Nvidia (NVDA) , which holds a commanding lead in the market for new AI technologies but is running into supply chain constraints that have its major customers looking for backup relief. Microsoft (MSFT) , Meta Platforms (META) , Google parent Alphabet (GOOGL) and Amazon (AMZN) are set to spend a collective total of $325 billion this year alone. Their three-year capex run rate, starting in 2023, is slated to increase nearly three-fold to around $690 billion. The group scored a major victory on that front by signing a five-year cloud computing deal with Amazon Web Services in December that includes the supply of customer AI chips. Marvell's ASIC chips, known as Trainium, help hyperscalers such as AWS, as well as other large providers of cloud services and infrastructure, move large amounts of data through integrated circuits and ultimately accelerate the speed and reliability with which they process information. For the three months ending in January, Marvell saw data center revenues rise 78% from last year to $1.37 billion, with overall revenues rising 26% to $1.82 billion. Fourth quarter earnings of 60 cents per share topped Wall Street forecasts by a penny. Heading into its current financial year, which ends in January of 2026, Marvell said its expects the ongoing surge in demand to power AI-related revenues past $2.5 billion. Bullish AI revenue outlook "We're definitely leaving this year open-ended in terms of what we can go do," CEO Matthew Murphy told investors on a conference call late Wednesday. "Last year, we had talked about $1.5 billion," he added. "We blew through that this year and we anticipate being substantially above that I'm not putting a number on it just yet. I think that there's a lot to go here in terms of the momentum in the business and the opportunity set in front of us." Looking into the current quarter, however, Marvell forecast overall revenues of just $1.88 billion, most of it from its data center business, a tally that was largely in-line with Wall Street forecasts. Related: Analyst has surprising words on Nvidia's stock after drop Cantor Fitzgerald analyst C.J. Muse said the conservative guidance, against the elevated expectations for the sector's biggest players, has likely put Marvell "in the penalty box until we gain further clarity." "Management discussed AI revenues tracking significantly better than the prior guide of $2.5 billion in [fiscal 2026], with a clear path for continued growth into [fiscal 2027] and beyond," said Muse, who lowered his price target on the stock by $35 to $125 per share. "As for perhaps even better and more important news, commentary from Management almost certainly confirms Marvel's win of Trainium3 with the company highlighting that Amazon custom silicon revenues are expected to grow on a year-on-year basis for both [fiscal 2026] and [fiscal 2027]," he added. Amazon deal key to AI growth Jefferies Blayne Curtis, who lowered his Marvell price target by $20 to $100 per share following last night's update, also noted the group's muted near-term guidance, but cited the longer-term potential of the group's ties with AWS. "The modest upside to estimates is clearly a disappointment vs elevated expectations for Tranium 2 heading into the print, but we do think that Marvell took further steps to confirm they will not lose the next generation (3nm)," he said. "Marvell reiterated that Amazon ASIC revenue would grow in [fiscal 2026] and [fiscal 2027] and inserted 'and beyond' into its commentary," he added "We still believe that they win [Trainium] 3nm if they deliver working silicon on time." Marvell Technology shares were marked 17.9% lower in premarket trading to indicate an opening bell price of $74.01 each, a move that would extend the stock's year-to-date slump to around 35%. More AI Stocks: "Shares are down sharply despite the good results, with some likely concerned about the magnitude of the beat, geopolitical pressures, and broader concerns about AI monetization." said CFRA analyst Angelo Zino, who kept his 'strong buy' rating in place following last night's update. "We expect continued momentum in AI-related networking and custom silicon programs (e.g, Amazon partnership) ... while non-AI revenues showed signs of stabilization/improvement after inventory digestion." Related: Veteran fund manager unveils eye-popping S&P 500 forecast

Marvell Technology Quells Fears Of Losing Next-Gen XPU At Amazon, Expects To Surpass AI Revenues In FY26 - Marvell Tech (NASDAQ:MRVL)

Shares of Marvell Technology Inc MRVL tanked in early trading on Thursday, despite the company reporting upbeat fourth-quarter results. The results came in amid an exciting earnings season. Here are some key analyst takeaways. KeyBanc Capital Markets On Marvell Technology Analyst John Vinh reaffirmed an Overweight rating, while reducing the price target from $135 to $115. Marvell Technology delivered solid fiscal fourth-quarter results, with revenues of $1.82 billion beating consensus of $1.80 billion and earnings of 60 cents per share coming in slightly better than expectations of 59 cents per share, Vinh said in a note. Datacenter revenues grew 78% year-on-year, "led by strong AI demand both in custom and optics," he added. Management reiterated that the company could significantly exceed its AI revenue target of $2.5 billion in fiscal 2026, the analyst stated. "This remains consistent with our view MRVL has won next-gen Trainium 2.5 (Ultra) but has lost Trainium 3 to Annapurna Labs (AWS)/Alchip," he wrote. Cantor Fitzgerald On Marvell Technology Analyst Quinn Bolton maintained a Buy rating, while cutting the price target from $120 to $100. There have been growing concerns around Marvell Technology losing the next-gen XPU at Amazon.com Inc AMZN, Bolton said. Management addressed these concerns by indicating "significant volume production on the current generation" and that the company is "deeply engaged on the next generation XPU with AMZN." "We estimate AI revenue was $1.940BN in FY25, well above the company's $1.5bn target," the analyst wrote. Marvell Technology plans to ramp production after Amazon completes its sampling and qualification cycles, Bolton further stated. Check out other analyst stock ratings. JPMorgan On Marvell Technology Analyst Harlan Sur reiterated an Overweight rating and price target of $130. Marvell Technology has won the follow-on XPU ASIC with its lead customer, Amazon, Sur said. This new AI XPU custom chip is likely to be used for AI training and could be manufactured on Taiwan Semiconductor Manufacturing Company's TSM 3nm node, he added. For the fiscal first quarter, the company guided to revenue growth of 3% sequentially, below market expectations, due to a slowdown in on-premise datacenter products, the analyst stated. "However, the AI/cloud datacenter business, including custom AI ASICs and 800G/1.6T, remains strong and is expected to grow double-digit% Q/Q," Sur wrote. Benchmark On Marvell Technology Analyst Cody Acree maintained a Buy rating and price target of $135. The company guided to revenue and earnings of $10 million and 1 cent per share, respectively, Acree said. While this was higher than the consensus, the guidance did not meet "elevated investor expectations," he added. The stock tanked in response to the "less than stellar guidance upside," the analyst stated. "While the broader AI trade has recently come under fire from increasing investor concerns regarding the impact of tariffs and heighted foreign trading restrictions, we believe there were many encouraging elements of Marvell's report to improve investors' enthusiasm for both the name and the AI-space, as a whole," he further wrote. MRVL Price Action: Shares of Marvell Technology had declined by18.22% to $73.72 at the time of publication on Thursday. Read More: Marvell Surpasses AI Chip Sales Target, Aims Higher For 2026, But Stock Plunges Due To Muted Guidance Photo: Shutterstock MRVLMarvell Technology Inc$75.19-16.6%OverviewAMZNAmazon.com Inc$204.69-1.76%TSMTaiwan Semiconductor Manufacturing Co Ltd$180.72-1.93%Market News and Data brought to you by Benzinga APIs