Marvell Technology (MRVL) was once the golden child of the AI chip boom, but today, it finds itself grappling with a mounting wall of worry. The company’s stock dropped by 7.3% in premarket trading after it postponed its highly anticipated investor day, originally scheduled for June 10, now pushed to an unspecified 2026 date. Marvell pointed to the “dynamic macroeconomic environment” as the reason for the delay, but the move has only deepened investor concerns, adding another blow to an already struggling stock.
Marvell Technology’s Delayed Investor Day Raises Major Red Flags
The news of Marvell’s postponed investor day only adds fuel to the fire, further straining investor confidence. The company’s stock has now plunged 45% year-to-date, erasing all the gains made in 2024. Marvell, once seen as a major player in the custom AI chip market alongside competitors like Nvidia, had been riding high on hopes that its partnerships with tech giants like Alphabet, Amazon, and Microsoft (MSFT) would drive significant demand for its custom chips. However, the postponement signals deeper issues, as analysts fear the company may miss out on major AI opportunities in the near future, such as losing the design contract for Amazon’s next-generation Trainium chips.
MRVL’s Guidance Cuts and AI Hopes Dim
Marvell’s quarterly earnings report in March didn’t help matters. The company reaffirmed its first-quarter revenue guidance but failed to excite investors, offering a narrower range than expected. Marvell’s performance has been under intense scrutiny, particularly since reports surfaced suggesting it might lose out to its Taiwanese competitor, Alchip, for Amazon’s next-generation Trainium project. As William Blair analyst Sebastien Naji pointed out, “The postponed investor day will only add to the wall of worry that has developed around the name,” particularly when it comes to Marvell’s future in AI chips.
Some Analysts Are Optimistic about MRVL Stock
Despite the concerns, some analysts like Naji remain cautiously optimistic about Marvell’s long-term prospects. While Naji reiterated an “Outperform” rating, he acknowledged that the stock is likely to remain range-bound until investor confidence in Marvell’s AI chip pipeline improves. At current levels, the stock doesn’t seem overly expensive, trading at a price-to-earnings multiple of just 21 times 2025 earnings, down significantly from its 40-times multiple at the peak of its hype. However, with Marvell’s future hanging in the balance, investors are left waiting to see if the company can regain its footing in the competitive AI space.
Is Marvell a Good Stock to Buy?
Despite the recent turmoil, Marvell’s stock is still rated a Strong Buy by analysts, with 27 out of 29 analysts giving it a “Buy” rating. The average 12-month MRVL price target is $104.23, with a high forecast of $140.00 and a low of $60.00. This reflects optimism about the company’s future growth potential, particularly in AI chips, despite its current struggles. The 70% upside indicates that investors still see significant opportunity in Marvell, especially if it can regain confidence in its chip designs and partnerships.
