Marvell Technology: Balancing Expectations with Performance – Hold Rating Maintained

Marvell (MRVL – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Joseph Moore from Morgan Stanley maintained a Hold rating on the stock and has a $90.00 price target.

Joseph Moore has given his Hold rating due to a combination of factors related to Marvell’s recent performance and future outlook. The company’s quarterly results were in line with expectations, which was disappointing given the high hopes for their ASIC business. This expectation was fueled by positive management commentary and other industry signals, yet the anticipated upside did not materialize.
Moreover, while Marvell experienced significant data center growth in previous quarters, the company now projects more moderate growth moving forward. Concerns also arise from the lower margins and switching costs associated with their Trainium ASIC business, as well as the significant design input from Amazon. Despite these challenges, Marvell is expected to exceed its initial AI revenue target, and its optical business remains robust, contributing to a balanced risk-reward scenario that supports a Hold rating.

Moore covers the Technology sector, focusing on stocks such as Nvidia, Broadcom, and Western Digital. According to TipRanks, Moore has an average return of 11.8% and a 53.92% success rate on recommended stocks.