Marvell downgraded to Hold at Benchmark on loss of Amazon Tranium designs

As previously reported, Benchmark analyst Cody Acree downgraded Marvell (MRVL) to Hold from Buy and removed the firm’s price target on shares. Following “extensive industry meetings” during the firm’s recent Silicon Valley bus tour, the analyst now has “a high degree of conviction” that the company has lost both Amazon’s (AMZN) Tranium 3 and 4 designs to its Taiwanese competitor, Alchip, and views this as the primary factor in the company’s projected slowing to only 20% XPU growth in calendar 2026, the analyst tells investors. While the firm believes the company is “being forthright” in its guidance for increasing annual Amazon revenue, it believes this commitment is driven by expected continued Tranium 2 volumes and a Kuiper low-earth orbit engagement, not the successful transition to Tranium 3 designs as many on the sell-side have concluded.