Analysts revise Marvell stock price targets after earnings

Marvell Technology (NASDAQ: MRVL) suffered a sharp sell-off, with shares plunging over 19% on March 6, following its Q4 and FY 2025 earnings report released on March 5. 

Despite delivering slightly better-than-expected results on both earnings per share (EPS) and revenue, and issuing forward guidance that topped Wall Street’s average expectations, the results failed to impress investors who had expected significant AI tailwinds to be reflected in the outlook.

The market’s disappointment sent Marvell shares tumbling to $72.28, their lowest level since October 2024, marking a 41% drop from the January 23 high of $126. The broader semiconductor sector also took a hit, with Nvidia (NASDAQ: NVDA) sliding over 5% and Broadcom (NASDAQ: AVGO) shedding more than 6%.

Marvell’s Q4 performance and market reaction

Despite solid Q4 earnings, adjusted EPS came in at $0.60, beating the $0.59 estimate, while revenue reached $1.82 billion, surpassing the $1.80 billion forecast. 

The company also saw a 78% year-over-year surge in data center revenue, reaching $1.37 billion, slightly ahead of Wall Street expectations.

Guidance was roughly in line with expectations. For the current quarter, while Marvell projected $1.88 billion in revenue, narrowly surpassing the $1.87 billion analyst consensus, it fell short of investor expectations, which anticipated a more bullish outlook closer to $2 billion. 

Adding to concerns, Marvell’s partnership with Amazon Web Services (AWS) on the Trainium AI chip and the outlook for its custom application-specific integrated circuits (ASICs) also raised concerns.

Analysts revise Marvell stock price target

These uncertainties prompted a wave of price target cuts from analysts, who acknowledged the company’s solid Q4 results but expressed concerns over its near-term AI prospects.

Barclays analyst Tom O’Malley lowered Marvell’s price target from $150 to $130, maintaining an ‘Overweight’ rating. While the company posted solid Q4 results, the analyst noted that it ‘missed the high watermark’ set by the rest of the Amazon supply chain, making it vulnerable in a market ‘punishing anything not perfect in AI.’

Similarly, KeyBanc also trimmed its target from $135 to $115, pointing out that while Q4 Data Center revenues surged 24% quarter-over-quarter and 78% year-over-year, investor expectations were even higher. Despite the sell-off, the firm remains optimistic about Marvell’s long-term prospects.

Meanwhile, BofA slashed its price target from $150 to $120, reiterating a ‘Buy’ rating. Despite the stock’s after-hours drop, the firm continues to see Marvell as a top-3 AI vendor alongside Nvidia and Broadcom and modestly adjusted its FY26-FY28 estimates upward.

Wells Fargo analyst Aaron Rakers also lowered his target from $140 to $120, maintaining an Overweight rating. He noted that while the pullback seemed excessive, Marvell’s AWS Trainium3 design wins remain a long-term positive, further strengthening the firm’s confidence in its path to $4 per share in EPS.

Despite the price target revisions, analysts largely remain bullish on Marvell’s long-term prospects, even as short-term volatility weighs on the stock.

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