Key insights
- Goldman Sachs reiterated a Neutral rating on Marvell (MRVL) after in-line earnings, but the company's Q2 revenue and EPS guidance exceeded both Goldman Sachs' and Street estimates. Data Center revenue was in line, while Communications revenue beat expectations. Despite strong growth and analyst upgrades, InvestingPro analysis suggests the stock is overvalued. The positive guidance suggests continued momentum in Marvell's business, potentially benefiting the semiconductor sector.
Investing.com - Goldman Sachs reiterated a Neutral rating and $125.00 price target on Marvell Technology (NASDAQ:MRVL) following the company’s quarterly results.
Marvell reported revenue of $2.42 billion, in line with Goldman Sachs’ estimate of $2.40 billion and the Street consensus of $2.41 billion. Operating earnings per share of $0.80 matched both Goldman Sachs’ estimate of $0.79 and the Street consensus of $0.80. Gross margin of 58.9% was in line with Goldman Sachs at 58.7% and the Street at 58.8%.
Data Center revenue of $1.83 billion was in line with both Goldman Sachs and Street estimates at $1.83 billion. Communications and Other revenue of $585 million was above Goldman Sachs’ estimate of $569 million and the Street estimate of $580 million.
Marvell guided second-quarter revenue to $2.70 billion at the midpoint, above Goldman Sachs’ estimate of $2.61 billion and the Street consensus of $2.62 billion. Non-GAAP gross margin was guided to 58.75%, above Goldman Sachs at 58.5% and the Street at 58.6%. Non-GAAP earnings per share of $0.93 at the midpoint is above Goldman Sachs at $0.90 and the Street at $0.91.The company’s strong momentum is reflected in its 42% revenue growth over the last twelve months and a market capitalization of $173.6 billion. Yet InvestingPro analysis suggests the stock is currently overvalued relative to its Fair Value—placing it among stocks on the Most Overvalued list. Investors can access comprehensive valuation metrics and 20+ additional ProTips for MRVL through InvestingPro.
Goldman Sachs’ $125 price target is based on a 28 times price-to-earnings multiple applied to a normalized earnings per share estimate of $4.50.
In other recent news, Marvell Technology has seen a series of analyst upgrades and increased price targets due to various strengths in its business operations. HSBC upgraded Marvell’s stock rating to Buy from Hold and raised its price target significantly, citing increased earnings estimates for fiscal years 2027 and 2028. The firm pointed to higher revenue projections from optical interconnect products and ASIC revenue driven by Marvell’s CXL portfolio. Susquehanna also raised its price target on Marvell, maintaining a Positive rating, and highlighted the strength in the company’s Inphi and Custom XPU businesses. This comes ahead of Marvell’s upcoming earnings report, with Susquehanna noting benefits to Marvell’s Trainium business from a new agreement between Anthropic and Amazon.
Cantor Fitzgerald increased its price target for Marvell, maintaining a Neutral rating, and anticipates a modest beat for Marvell’s April quarter results, driven by data center product strength. Similarly, Stifel raised its price target to $210, maintaining a Buy rating, and expects Marvell to exceed its revenue estimate for the April quarter. Stifel highlighted data center operations, particularly optical interconnects and the lead XPU program, as key growth drivers. Additionally, options data suggest that Marvell’s stock could experience a 13% swing upon the release of its earnings report on May 27.
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