BofA Maintains Cautious Stance on Marvell Technology (MRVL), Cites Growth Challenges

Marvell Technology Inc. (NASDAQ:MRVL) takes the second place in our list of worst-performing data center stocks in 2025, with a nearly 25% YTD decline.

The overall consensus of analysts remains largely positive, but some analysts still hold a cautious stance. On September 25, Bank of America Securities’ Vivek Arya maintained a Hold rating on Marvell Technology (NASDAQ: MRVL) with a price target of $88. He pointed out that management’s upbeat commentary, coupled with an expanded stock buyback plan, has provided greater confidence in sales growth for fiscal 2027 and 2028. These forecasts now appear more in line with market expectations.

However, Arya noted that Marvell’s AI segment is likely to expand at a slower pace than peers, which could weigh on its competitive position. The company’s largest customer, Amazon, has shown flat demand on a quarter-over-quarter basis, while a new project with Microsoft brings potential but also uncertainty. According to the analyst, the Microsoft engagement involves a customer with limited experience in scaling accelerator ASICs, and competition from established GPU providers remains a significant headwind.

The analyst also highlighted competitive pressures from Taiwan-based rivals, which could challenge margins and market share. While visibility in data center demand has improved and share repurchases support near-term sentiment, risks remain around limited earnings revisions and execution on large custom silicon projects with AWS and Microsoft.

Marvell Technology Inc. (NASDAQ:MRVL) designs and develops semiconductors for data infrastructure, including networking, storage, and compute solutions. Its products are used in cloud data centers, 5G networks, and enterprise systems.

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Disclosure: None. This article is originally published at Insider Monkey.