This article first appeared on GuruFocus.
Marvell Technology (NASDAQ:MRVL) got hammered Friday, with shares sliding after the chipmaker’s latest earnings and guidance left Wall Street cold. The stock is now off more than 30% this year, as doubts grow over its role in the artificial intelligence buildout.
Bank of America’s Vivek Arya cut his rating to Neutral from Buy and trimmed his price target to $78 from $90, saying he didn’t hear the same confidence around Marvell’s AI growth story. He flagged delays with Microsoft’s Maia chips and warned Marvell’s share in Amazon’s next-gen program may shrink. Arya now sees CY26 data center sales growing only in the mid-teens, well below his earlier 23-25% forecast.
Needham’s Quinn Bolton also dialed back expectations. He sees Marvell’s custom silicon sales dropping 15% quarter-on-quarter in F3Q26 before bouncing back in F4Q26. He pointed to shifting delivery schedules and supply chain hiccups at one of Marvell’s largest customers as the main culprit.
Marvell’s AI runway is bumpier than many hoped, and the timing of wins at Microsoft and Amazon will be key to regaining momentum.