B of A Securities Downgrades Marvell Tech to Neutral, PT to $78 from $90.

B of A Securities Downgrades Marvell Tech to Neutral, PT to $78 from $90.

In a significant move, Bank of America has downgraded Marvell Technology to neutral from buy, lowering its price target from $90 to $78 per share. The downgrade reflects reduced confidence in Marvell's growth trajectory, particularly in its artificial intelligence (AI) segment [1].

The downgrade follows Marvell's second-quarter results, which were in line with expectations, but the company issued weaker-than-expected guidance for the current quarter. Analyst Vivek Arya noted that the firm's AI growth prospects were less clear than previously anticipated [2]. Specifically, uncertainty has grown around the timing of Marvell's new Microsoft Maia project and its share in Amazon's next-generation 3nm chip program.

As a result of these uncertainties, Bank of America has revised its data center growth forecast for the current year to mid-teens year-on-year from a prior estimate of 23-25%. This adjustment is expected to result in a $400 million drag on projected sales for the fiscal year ending in 2026 [1].

Marvell shares have been volatile in 2025, pulling back more than 30% year-to-date, and further dropped by 13% in the premarket following the downgrade and earnings report [2]. Despite the recent setbacks, Bank of America maintains a positive outlook on the company's valuation, citing a strong intellectual property portfolio and balance sheet strength. The bank's analysts also highlighted that the proceeds from Marvell's auto divestiture could be used for buybacks or acquisitions.

References:
[1] https://www.cnbc.com/2025/08/29/bank-of-america-downgrades-chipmaker-marvell-technology-on-lower-growth-outlook-.html
[2] https://finance.yahoo.com/news/bofa-downgrades-marvell-neutral-ai-113547475.html