By Mackenzie Tatananni

Shares of Marvell Technology have tumbled 20% this year, even as the benchmark S&P 500 gained 13%. But some analysts believe the stock can outshine the broader market.

Oppenheimer analysts reiterated an Outperform rating on shares of the semiconductor company and raised their price target to $115 from $95. Marvell stock was trading higher earlier in the session but turned lower, falling 3% to $87.93, after President Donald Trump threatened Beijing with a " massive increase" of tariffs on Chinese goods because of China's efforts to impose export controls on rare earth metals.

The benchmark S&P 500 was down 1.5%.

The price target hike came after Oppenheimer hosted meetings with the company's chief financial officer and senior vice president of investor relations. Management struck a "notably confident" tone as the company outlined its "sustained networking outperformance," analysts wrote.

Oppenheimer sees 10% revenue growth across all of Marvell's business segments in 2026, as hyperscalers continue to deploy AI infrastructure. Marvell's expansive data center AI platform, which spans optics, storage, and circuits, taps a $95 billion total addressable market, the firm wrote.

Analysts noted that Marvell has secured more than 20 custom project wins to date, including those with major data-center operators like Microsoft and Amazon.com.

They see no "air pocket" in revenue for custom-designed integrated circuits due to the steady rollout of new products. The analysts believe Marvell's Trainium3 AI accelerator chip remains on track for release in early 2026, followed by the next-generation Trainium4.

Oppenheimer conceded that the "confusion surrounding continuity at top customer AWS has pressured the stock for much of CY25." It isn't the only firm to acknowledge this ambiguity. Earlier this month, TD Cowen downgraded Marvell stock, citing a lack of certainty around custom processor sales to partners like Amazon.

However, Oppenheimer believes the Marvell-AWS relationship "remains very much intact," and expects shares to re-rate higher as management executes on the company's roadmap and investor confidence swells.

In short, Marvell's "diverse, structural growth" led by share gains in the market for data center AI make it one to watch. The company is a "well-managed, emerging growth/GM story," analysts wrote.

They aren't the only bulls. Of 40 analysts polled by FactSet, 32 rate Marvell at Buy or the equivalent. Eight others rate the stock at Hold.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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October 10, 2025 11:55 ET (15:55 GMT)

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