Melius Downgrades Marvell Technology Stock (MRVL) Ahead of Q1 Earnings

Chipmaker Marvell Technology (MRVL) is scheduled to announce its results for the first quarter of Fiscal 2026 after the market closes on May 29. Ahead of the Q1 earnings, Melius Research analyst Ben Reitzer downgraded MRVL stock from Buy to Hold with a price target of $66, saying that “this call just hasn’t worked out.”

Melius Moves to the Sidelines on MRVL Stock

Reitzer stated that while he is not saying that there is a lot of downside in Marvell stock, which has plunged 44% year-to-date, there is a risk that shares will remain rangebound and/or not perform as well as most of the stocks in his semiconductors and hardware coverage for the rest of 2025 and 2026.

The analyst highlighted that his bullish thesis for MRVL stock was based on 1) upside to quarters in CY25 due to custom silicon momentum, 2) upside in 2026-2028 from Amazon (AMZN) and Microsoft (MSFT) custom accelerators and 3) confirmation of this improved visibility and upside from an analyst day in June 2025, with expectations that the company would outline an even bigger custom silicon total addressable market (TAM) and customer momentum.

While Reitzer still sees upside in Marvell’s optical AI business and thinks that the legacy chip businesses may have benefited from some tariff pull forward, he believes that all three elements of his previously bullish thesis have certain “real flaws.” He doesn’t see much revenue upside in calendar year 2025 due to a slower ramp of Amazon’s Tranium.

Is MRVL a Good Stock to Buy?

Meanwhile, Wall Street expects Marvell to report EPS (earnings per share) of $0.61, reflecting a year-over-year jump of 154%. Analysts estimate revenue to rise about 62% to $1.88 billion, supported by AI (artificial intelligence)-related tailwinds.

Ahead of the results, most analysts are bullish on Marvell Technology stock, with a Strong Buy consensus rating based on 26 Buys and four Holds. The average MRVL stock price target of $97.81 implies 58.1% upside potential from current levels.

See more MRVL analyst ratings