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

Core Viewpoint - Marvell Technology, Inc. (NASDAQ:MRVL) is facing challenges in achieving its 2025 data center targets, leading to a downgrade by Barclays from "Overweight" to "Equalweight" with a price target of $80.00, amid concerns over competition from Broadcom [1][3]. Group 1: Company Performance and Outlook - The application-specific integrated circuits (ASIC) market for Marvell is projected to be less robust through 2026 than initially anticipated, although optics growth is expected to remain strong due to the 800G cycle [2]. - Marvell's ability to meet its data center revenue target of approximately $7 billion for the next year is in question, especially as Broadcom is gaining market share in the AI segment [3]. Group 2: Competitive Landscape - Marvell is recognized for its strong intellectual property portfolio and its pivotal role in the evolution of interconnect technology, making it a significant player in the AI sector [3]. - Concerns are raised about the long-term dynamics of market share, with Broadcom expected to capture a significant portion of the AI XPU market, particularly at the 1.6T level, which may detract from Marvell's core optical business [2][3]. Group 3: Investment Considerations - While Marvell has potential as an investment, analysts suggest that other AI stocks may present greater upside potential with less downside risk [4].