Marvell Technology Plunges 7.92% Amid Amazon, Microsoft Losses

Marvell Technology's stock price experienced a significant drop of 7.92% in pre-market trading on May 7, 2025, reflecting a challenging period for the company.

Analysts have expressed concerns over Marvell Technology's recent performance, particularly its loss of business with Amazon's Trainium Gen3. This loss, coupled with the potential loss of Microsoft Maia Gen3, has led to a downgrade in the company's rating from Overweight to Neutral by Cantor Fitzgerald analyst C.J. Muse. The price target has been adjusted to $60, down from $125, indicating a pessimistic outlook for the company's future prospects.

Additionally, Marvell's decision to postpone its Investor Day event has raised further concerns about the company's ability to deliver positive developments. Analysts worry about the sustainability of Marvell’s custom silicon business, noting its lack of "stickiness," which could continue to negatively affect its market valuation. These factors suggest that Marvell Technology faces significant challenges as it navigates the shifting landscape of its business.