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Yahoo
27-05-2025
- Business
- Yahoo
Why Marvell's AI Revenue Could Top $4 Billion By 2025, Analyst Explains
JP Morgan analyst Harlan Sur maintained an Overweight rating on Marvell Technology, Inc. (NASDAQ:MRVL) with a price forecast of $130 on Tuesday. This price forecast is based on Marvell's strong market leadership in optical connectivity, synergies with its Storage, Networking, and embedded processing franchises, and its solid growth outlook in AI/Networking, Sur asserted. Marvell will report earnings on Thursday, and Sur expects a continued volume ramp of Inc. (NASDAQ:AMZN) Trainium 2 ASIC and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) Google Axion ARM CPU programs, strong demand for its 800G products, and the initial ramp of 1.6T optical DSPs, combined with a continued cyclical recovery in its enterprise and carrier the analyst expects April quarter results ($1.875 billion, up 3% Q/Q) and July quarter guidance ($2.00 billion+, 7% Q/Q) to be in line with Sur and consensus estimates, with solid data center growth led by its AI ASIC ramps, growth in 800G/1.6T AI optical shipments, 400ZR shipments, and HDD/SSD controllers. He noted that the remainder of its business should drive a Q/Q growth profile on cyclical improvements/new product cycles. Sur noted that Marvell's Microsoft Corp. (NASDAQ:MSFT) AI ASIC MAIA Gen 2-3nm program is on track to ramp in calendar year 2026. Marvell has also won the Gen 3 MAIA program and has already commenced early chip design activity, he stated. The analyst said that 800G PAM4 optical DSP orders and shipments remain solid within Marvell's optical business, with an increasing ramp of next-gen 1.6T DSP into the second half. Sur noted that Marvell is tracking to drive $4 billion in AI revenues this year (ASICs + networking), up 2x+ Y/Y, with a strong growth profile into calendar year 2026. In cyclical business, demand from enterprise networking (Cisco Systems, Inc. (NASDAQ: CSCO)) remains healthy, and demand for carrier infrastructure is stabilizing, as per Sur. In automotive, the divestiture of the auto business, expected to close in the calendar year 2025 ($225-$250 million revenue in the fiscal year 2026), is a revenue headwind but should be overall accretive to the Marvell's earnings power by $0.05-$0.10, the analyst said. More importantly, he noted the custom data center and AI ASIC pipeline are continuing to expand. Price Action: MRVL stock was trading higher by 5.69% to $64.15 at last check Tuesday. Read Next:Photo by JHVEPhoto via Shutterstock Date Firm Action From To Mar 2022 Susquehanna Maintains Positive Mar 2022 Summit Insights Group Downgrades Buy Hold Mar 2022 Morgan Stanley Maintains Equal-Weight View More Analyst Ratings for MRVL View the Latest Analyst Ratings Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? MARVELL TECH (MRVL): Free Stock Analysis Report This article Why Marvell's AI Revenue Could Top $4 Billion By 2025, Analyst Explains originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
12-04-2025
- Business
- Yahoo
Trade War, Capex Pressures Push Citi to Lower Nvidia, Marvell Outlooks
Citi adjusted its outlook on Nvidia (NASDAQ:NVDA) and Marvell Technology (NASDAQ:MRVL) on Friday, citing rising concerns over tariffs and a cautious capital spending environment among large tech clients. Warning! GuruFocus has detected 3 Warning Signs with NVDA. For Nvidia, analyst Atif Malik reduced projected GPU unit shipments for calendar years 2025 and 2026 by 3% and 5%, respectively. The revision reflects updated expectations for hyperscaler capital expenditures, which now forecast spending growth of 35% in 2025 and 15% in 2026 both lower due to reduced confidence in Microsoft's (NASDAQ:MSFT) spending and broader economic uncertainty linked to the ongoing trade war. While Nvidia may be able to offset some of the added GPU costs through price increases, the firm expects profit margins to be affected. Malik lowered Nvidia's earnings projections by 3% for 2025 and 6% for 2026 and revised his price target to $150, while retaining a Buy rating. For Marvell, Citi trimmed fiscal 2027 revenue and earnings forecasts by 5% and 8%, respectively. The cuts stem from lowered expectations for hyperscaler demand and revised assumptions around chip-on-a-wafer-substrate technology. Malik also cut projected AI ASIC volumes for 2026 by 20%, citing the possibility that Amazon's Trainium line may not rely solely on Marvell as a supplier going forward. Despite these revisions, Citi reiterated a Buy rating on Marvell. This article first appeared on GuruFocus. Sign in to access your portfolio
