TD Cowen analyst Joshua Buchalter reiterated his Buy rating on Marvell Technology (MRVL) stock after the semiconductor player reported lukewarm Q2 results. He also maintained his $90 price target, which implies 16.5% upside potential from current levels. Buchalter is a four-star analyst on TipRanks, ranking #1,798 out of 10,004 analysts tracked. He boasts a 57% success rate and an average return per rating of 8.20%.
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Marvell’s adjusted earnings of $0.67 per share were in line with the consensus, while sales of $2 billion fell slightly short, causing its shares to drop over 11% in after-hours trading yesterday. However, the 57.5% year-over-year jump in sales was driven by growing demand for artificial intelligence (AI) in data centers, which accounts for the majority of Marvell’s revenue.
Marvell’s Near-Term Uncertainty Likely to Persist
Marvell guided for a sequential drop in sales from custom silicon in the October quarter due to “lumpiness,” before resuming growth in the January quarter. However, the Q3FY26 slowdown, combined with supply chain uncertainties, is likely to be poorly received by investors, Buchalter noted. He added that Marvell will need to show an upward trajectory in the January quarter to regain investor confidence.
Marvell designs custom AI chips for major tech firms like Microsoft (MSFT) and Amazon (AMZN), but its stock has declined 29.9% year-to-date amid investor doubts about its data center market position.
Marvell’s Role in Trainium Chips Remains Uncertain
Furthermore, Buchalter remains uncertain about Marvell’s role in Amazon’s next-generation Trainium 3 XPUs (X Processing Units). Although the management has guided that the second half of 2026 will be stronger than the first half, there was no clarity on the Trainium 3 involvement.
The analyst’s check suggests that there is a rising demand for Trainium 2, supported by Nvidia’s (NVDA) comments on sustained H100/H200 strength. This has been driving 5nm orders and also suggests that January quarter momentum is more likely tied to Trainium 2 rather than early Trainium 3 ramp.
To conclude, Buchalter noted that despite the ongoing debate around custom AI accelerators, management is staying focused on its AI webinar targets set earlier. He added that achieving a 20% market share in the $94 billion TAM (total addressable market) could drive an earnings per share of $8 by 2028, which is not yet reflected in the stock.
Is MRVL Stock a Buy, Hold, or Sell?
On TipRanks, MRVL stock has a Strong Buy consensus rating based on 27 Buys and five Hold ratings. The average Marvell Technology price target of $92.03 implies 19.2% upside potential from current levels.
