Barclays Downgrades Marvell (MRVL) as AI Chip Market Leans Toward Broadcom

Marvell Technology, Inc. (NASDAQ:MRVL) is one of the Trending AI Stocks on Wall Street’s Radar. On October 20, Barclays analyst Tom O’Malley downgraded the stock from “Overweight” to “Equalweight” with a price target of $80.00. The firm has expressed concerns over visibility for 2025 DC targets and the shift in AI share toward Broadcom.

According to the firm, the application-specific integrated circuits story into 2026 “is less robust than initially expected.” The company’s optics growth should remain strong into next year, driven by its 800G cycle. However, there are concerns regarding long-term share dynamics with Broadcom (AVGO) gaining share at 1.6T.

“MRVL is one of the biggest battleground stocks in our coverage. On one hand, the company has a strong IP portfolio and has been at the epicenter of the interconnect evolution making it an obvious stock to own in an AI build-out. On the other hand, versus other AI names who are showing a clear path to continued upward fundamental revisions, we worry about MRVL’s ability to hit DC targets for next year (~$7B). Beyond ’26, we see increased AI engagements but the lion’s share of AI XPU moving to AVGO and see share moving away from the core Optical business mainly at 1.6T. We are stepping aside here and will look to re-engage post clarity on the ASIC roadmap.”

Marvell Technology, Inc. (NASDAQ:MRVL) engages in the development and production of semiconductors, focusing heavily on data centers.

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