Shares of Marvell Technology Inc. (NASDAQ: MRVL) came under pressure in early trading on Thursday, despite the company announcing a big share buyback authorization.
Here are some key analyst takeaways from the JPMorgan Fireside Chat with Marvell Technology's CEO on Wednesday:
- BofA Securities analyst Vivek Arya maintained a Neutral rating, while raising the price target from $78 to $88.
- JPMorgan analyst Harlan Sur maintained an Overweight rating and a price target of $120.
Check out other analyst stock ratings.
BofA Securities: The confident tone of Marvell Technology's CEO and the higher buyback activity "improves our optimism" in the company’s prospects for 2026 and 2027, Arya said in a note. The company announced a share repurchase program of $5 billion, in addition to around $1.7 billion remaining in its existing plan, which totals nearly 10% of its outstanding stock, he added.
Apart from AI compute and optics, the company has "storage, switching, AECs, NICs, and other AI assets," each of which could represent a TAM (total addressable market) of over $1 billion, the analyst stated. He reiterated the Neutral rating due to:
- The company's AI business growth underperforms its peers
- Amazon.com Inc (NASDAQ: AMZN) customer business being sequentially flattish
- New Microsoft Corp (NASDAQ: MSFT) project has limited history of ramping any large accelerator ASICs
JPMorgan: The new stock repurchase program "underscoring management's confidence in the company's forward growth profile," Sur wrote. His key takeaways were:
- Management expects broad-based growth in the AI, datacenter and cyclical end markets in 2026
- The datacenter segment, including AI, is poised to grow at least in line with overall capex spending in 2026, with accelerating revenue growth expected in 2027 and 2028
- AI custom ASIC revenues are expected to grow at least 18%-20% in 2026
- Optical networking business has strong momentum and is expanding into scale-up networking
- Emerging datacenter business segment is poised for growth
MRVL Price Action: Shares of Marvell Technology had declined by 2.10% to $78.41 at the time of publication on Thursday.
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