By Angela Palumbo
Marvell Technology stock could get a much needed boost if the chip maker's earnings come in above Wall Street's hefty estimates as demand for artificial intelligence hardware grows. Reassuring commentary from management could do the trick as well.
Marvell is scheduled to report third-quarter financial results after the stock market closes on Tuesday. Analysts surveyed by FactSet expect adjusted earnings of 74 cents a share from revenue of $2.07 billion. That would compare with the 43 cents a share from revenue of $1.52 billion the company reported in the same period last year.
Analysts also expect Marvell's revenue from data centers, which account for the majority of its sales, to reach $1.51 billion, an increase from last year's $1.1 billion as the buildout of AI infrastructure continues.
Commentary from management regarding deals with major customers, specifically Microsoft and Amazon.com, will be in focus. "For MRVL, we see its relationship with AMZN remaining healthy, but MSFT will come into more focus as we move through C2026," UBS analyst Timothy Arcuri wrote in a note on Nov. 23.
Shares of Marvell surged 83% in 2024 as investors bet that customers would spend big on AI hardware. However, the stock has dropped 16% this year as Marvell struggles to convince the market it can win long-term deals amid tough competition.
"Investors continue to see custom ASIC through a digital lens -- either you are in or out," Arcuri said. ASICs -- or application-specific integrated circuits -- are an integrated circuit chip customized for a specific use. Google's Tensor Processing Units, now seen as a potential alternative to Nvidia's chips in some cases, are an example.
"Rather, we believe most customers are moving to diversify their roadmaps and use not only multiple GPU suppliers but also multiple ASIC suppliers," Arcuri added. He rates Marvell as a Buy with a $110 price target.
There have been a few bright spots for the company in recent weeks.
Bloomberg reported on Nov. 5 that SoftBank founder Masayoshi Son was potentially interested in acquiring Marvell to merge it with chip designer Arm Holdings -- in which SoftBank has a majority stake -- but that the two sides couldn't reach an agreement on terms.
And on Tuesday, The Information reported that Marvell was in advanced talks to acquire the startup Celestial AI in a deal potentially valued at more than $5 billion. Neither Marvell or Celestial immediately responded to a request for comment.
Marvell stock was up 1.9% to $92.79 on Tuesday. The S&P 500 was 0.1% higher.
Write to Angela Palumbo at angela.palumbo@dowjones.com
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December 02, 2025 15:15 ET (20:15 GMT)
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