Bank of America downgraded Marvell Technology (MRVL) stock after the chip company reported unimpressive Q2 FY26 results and issued a lackluster top-line guidance, sparking concerns about artificial intelligence (AI)-led growth. The bank’s 5-star analyst Vivek Arya lowered his rating for Marvell stock to Hold from Buy and reduced the price target to $78 from $90.
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Arya contended that, unlike previous earnings calls, he did not hear the same level of confidence about Marvell’s AI growth prospects in the near or medium term.
Marvell reported in-line Q2 earnings per share (EPS) of $0.67. Meanwhile, revenue increased 58% year-over-year to $2.01 billion, also in line with the Street’s consensus estimate. However, Q3 FY26 revenue outlook of $2.06 billion, plus or minus 5%, missed analysts’ average estimate of $2.11 billion. MRVL stock was down about 16% as of writing.
Top Analyst Moves to the Sidelines on Marvell Stock
Arya moved to the sidelines on Marvell stock and explained that his neutral stance reflects that the company’s opportunity/breadth of IP (intellectual property) offsets “lumpiness in AI sales, customer concentration risks, and strong competition for custom chip (ASIC) sockets.”
The analyst stated that currently, he sees incrementally higher uncertainty around both the timing of MRVL’s new project (Microsoft (MSFT) Maia) and the company’s share in the next-gen 3nm Amazon (AMZN) project. Consequently, Arya lowered his calendar year 2026 data center year-over-year growth estimate to mid-teens from his prior estimate in the range of 23%-25%.
Arya’s revised price target indicates a valuation multiple of 24x CY26 estimated earnings, down from 25x, but still in line with MRVL’s historical multiples.
More Analysts Slash Price Targets for MRVL Stock
Aside from Arya, many other top analysts lowered their price targets for Marvell stock.
Rosenblatt analyst Kevin Cassidy slashed his price target for MRVL stock to $95 from $124, but maintained a Buy rating. The 5-star analyst noted that Q2 results were mixed, with data center ASIC (Application-Specific Integrated Circuits) shipment adjustments from October to January resulting in a slight sales miss. Cassidy reduced his Fiscal 2027 revenue estimates to reflect the automotive business divestiture and lower data center shipments.
Additionally, JPMorgan’s Harlan Sur lowered his price target for Marvell stock to $120 from $130, while maintaining a Buy rating. The top-rated analyst noted that MRVL reported in-line July quarter earnings, with upside in consumer demand being offset by weaker demand trends in the data center business. Nevertheless, Sur expects a “solid setup” for Marvell in the times ahead, driven by the continued recovery in its cyclical businesses and AI growth tailwinds.
What Is the Price Target for MRVL Stock?
Currently, Wall Street has a Strong Buy consensus rating on Marvell Technology stock based on 26 Buys and five Hold recommendations. The average MRVL stock price target of $92.11 indicates 42.4% upside potential from current levels.
These ratings/price targets might change as more analysts react to Marvell’s Q2 report.
