Marvell faces growing competition from Taiwanese chip design firms for hyperscaler contracts to develop custom AI accelerators. MediaTek is reportedly undercutting Marvell’s turnkey markup by 15%-20%, putting pressure on margins even as Marvell’s AI growth outlook remains strong.
Marvell reports record design wins and a significant partnership with Google. An analyst suggested the partnership could generate substantial revenue over six years.
Marvell reported $2.17 billion in revenue last quarter. Its data center segment accounted for 79% of the total.
Despite a recent pullback in Marvell’s stock, Wall Street analysts’ consensus price target implies significant upside.