Marvell Technology(US:MRVL) Finbold·2025-03-07 12:01Core Viewpoint - Marvell Technology experienced a significant sell-off, with shares dropping over 19% following its Q4 and FY 2025 earnings report, despite slightly better-than-expected results and forward guidance that exceeded Wall Street's average expectations. Investors were disappointed as they anticipated more substantial AI-related growth in the outlook [1][2]. Group 1: Q4 Performance - Marvell's Q4 adjusted EPS was $0.60, surpassing the $0.59 estimate, while revenue reached $1.82 billion, exceeding the $1.80 billion forecast [3]. - The company reported a 78% year-over-year increase in data center revenue, amounting to $1.37 billion, which was slightly above Wall Street expectations [3]. Group 2: Guidance and Market Reaction - For the current quarter, Marvell projected revenue of $1.88 billion, just above the $1.87 billion analyst consensus, but fell short of investor expectations of around $2 billion [4]. - Concerns were raised regarding Marvell's partnership with Amazon Web Services (AWS) on the Trainium AI chip and the outlook for its custom application-specific integrated circuits (ASICs) [4]. Group 3: Analyst Reactions and Price Target Adjustments - Following the earnings report, analysts revised their price targets for Marvell, acknowledging solid Q4 results but expressing concerns over near-term AI prospects [5]. - Barclays analyst Tom O'Malley reduced the price target from $150 to $130 while maintaining an 'Overweight' rating, noting that Marvell missed expectations set by the Amazon supply chain [6]. - KeyBanc lowered its target from $135 to $115, highlighting that while Q4 data center revenues surged, investor expectations were even higher [6]. - BofA cut its price target from $150 to $120 but reiterated a 'Buy' rating, viewing Marvell as a top-3 AI vendor alongside Nvidia and Broadcom [7]. - Wells Fargo analyst Aaron Rakers reduced his target from $140 to $120, maintaining an Overweight rating, and noted that the pullback seemed excessive [8].