Marvell Technology (MRVL) has had a turbulent ride in 2025. The stock has dropped more than 40% this year, dragged down by a perfect storm of sector-wide weakness and company-specific setbacks. A broader tech selloff, sparked by concerns over trade tensions and a slowing global economy, weighed heavily on sentiment early in the year.

The company’s March results didn’t help matters. While the numbers weren’t disastrous, the guidance issued fell flat, souring investor sentiment, particularly as AI-related stocks lost some of their shine this year. Worries have also surfaced around Marvell potentially missing out on designing Amazon’s (AMZN) Trainium AI chips, casting further doubt on its competitive edge in the high-stakes AI race.

So, with the company’s shares sitting deep in the red this year, is this a rare window to scoop up a beaten-down chip leader or a sign of deeper trouble ahead?

About Marvell Stock

For over 25 years, Marvell Technology (MRVL) has worked closely with leading technology companies to develop semiconductor solutions that move, store, process, and secure the world’s data. Focused on deep collaboration and transparency, the company helps shape the future of enterprise, cloud, automotive, and carrier infrastructure, adapting to current demands while anticipating what comes next.

With a market cap hovering around $52.1 billion, this once high-flying chip designer has seen its shares tumble 50% from their January peak of $127.48. In 2025 alone, the stock has plunged 40%, a sharp contrast to the broader S&P 500 Index ($SPX), which is up slightly over the same period. The dramatic underperformance highlights just how far sentiment has shifted for this semiconductor name.

After a sharp selloff this year, MRVL is now trading at 29.1 times forward earnings and 9.1 times sales, both below its five-year averages of 39.29x and 10.43x, respectively. With valuations beginning to look attractive compared to historical levels, the reset reflects tempered expectations but may also hint at a potential entry point for investors eyeing a rebound.

Marvell’s Q4 Earnings Snapshot

Marvell Technology’s fiscal 2025 fourth quarter report delivered strong numbers on March 5, but the market wasn’t impressed. Shares tumbled 19.5% the very next day after results were announced, despite revenue hitting a record $1.82 billion, up 27.4% year-over-year and just above Wall Street’s $1.8 billion forecast. The data center segment stole the show with a massive 78.5% annual jump to $1.4 billion, while adjusted EPS climbed 30.4% to $0.60, narrowly beating the consensus target of $0.59. 

However, investor enthusiasm cooled quickly as the company’s outlook for Q1 fiscal 2026 failed to inspire. Marvell guided for $1.875 billion in revenue, representing over 60% year-over-year growth at the midpoint, with GAAP gross margins of around 50.5%. Plus, non-GAAP EPS is projected to range between $0.56 and $0.66. However, some analysts were expecting guidance for $2 billion in revenue. With first-quarter results due on May 29 after the market closes, all eyes are on whether the chipmaker can reassure a skeptical market.

What Do Analysts Expect for Marvell Stock? 

Marvell Technology’s rough ride in 2025 just hit another bump as analysts at Melius Research downgraded the stock to “Hold,” citing growing concerns over the company’s competitive standing and long-term visibility. With shares down year-to-date, Melius warned that Marvell may continue lagging behind other semiconductor names for the remainder of the year and possibly beyond. 

The once-hot AI play is now facing execution risks, limited near-term revenue upside due to Amazon’s sluggish Trainium chip ramp, and doubts around its future role in custom accelerators. 

Despite these headwinds, the optics business could still outpace chip demand in the near term, but Melius cautioned that investors are unlikely to reward this part of the business with a premium due to long-term margin pressure. The firm’s price target remains at $66.

Nevertheless, Wall Street remains highly bullish on MRVL stock, sticking to a consensus “Strong Buy” rating overall. Of the 31 analysts offering recommendations, 25 are giving it a solid “Strong Buy,” two suggest a “Moderate Buy,” and the remaining four give a “Hold.”

MRVL’s average analyst price target of $100 indicates 50% potential upside from the current price levels. The Street-high price target of $149 suggests an even greater leap of 129% from here.