Marvell Technology Quells Fears Of Losing Next-Gen XPU At Amazon, Expects To Surpass AI Revenues In FY26

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

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